NEW YORK, July 26, 2026, 15:02 EDT — With U.S. markets closed ahead of the weekend, PayPal holds on to nearly two-thirds of its previously reported bid premium.
- PayPal finished Friday trading at $56.15, which is 7.7% below the $60.50 proposed offer.
- The stock declined by 0.7% last week but was still trading 18.5% higher compared to its close before the report on July 14.
- Analysts are expecting second-quarter earnings of $1.28 per share on Tuesday, according to preliminary consensus.
PayPal Holdings NASDAQ:PYPL heads into earnings week retaining nearly two-thirds of the premium tied to reported takeover speculation. As of Friday’s close, the shares preserved 66.9% of the difference between $47.37 and the proposed $60.50.
This results in $4.35 per share still available. The leftover spread stands at 7.7%, not accounting for timing and completion risk.
The second-quarter report due Tuesday could influence both factors. Robust earnings may bolster demand, while weaker numbers might favor bidders.
The share price declined by 0.7% over the past week, ending at $56.15. Trading volume reached 11.8 million on Friday, which is roughly 30% under the 65-day average.
| Measure | Value |
|---|---|
| Friday’s closing price | $56.15 |
| Change for the week | -0.7% |
| Proposal reported | $60.50 |
| Spread left | $4.35 / 7.7% |
| Gross premium from bid realized | 66.9% |
| Median target by analysts | $48.00 |
| Q2 EPS consensus (preliminary) | $1.28 |
The scorecard is based on regular-session prices, disclosed proposal details, and the latest analyst forecasts.
Truist Financial NYSE:TFC announced the latest rating shift on Friday. Analyst Matthew Coad raised his recommendation on PayPal from Sell to Hold.
He increased the price target to $57 from $44. Coad described Stripe’s interest as “real,” but cautioned that turning the business around independently is still challenging. Barchart.com
Stripe and Advent International made a proposal of $60.50 per share, people with knowledge of the situation said. The bid is backed by about $50 billion in funding from banks.
The bidders are set to have equal ownership. PayPal’s board views the offer as insufficient, according to sources with knowledge of the discussions.
William Blair analyst Andrew Jeffrey said there could be potential for a higher offer. “We do not think PayPal’s new CEO will likely embrace what could be viewed as a low-ball offer,” he said. Jeffrey noted that bidders might go as high as $70. Reuters
Focus turns to earnings as the next key hurdle. Analysts’ initial consensus expects second-quarter EPS at $1.28.
The estimate was $1.34 three months earlier. The 4.5% reduction eased Tuesday’s threshold.
Revenue for the first quarter climbed 7% to $8.35 billion. Payment volume on a currency-neutral basis grew 8%, reaching approximately $464 billion.
Branded checkout volume increased by only 2%. Transaction-margin dollars, an indicator more closely tied to monetized growth, climbed 3%.
PayPal CEO Enrique Lores has split the company into three separate operating divisions. Lores is also aiming for $1.5 billion in cost reductions within two to three years, with plans for the savings to be reinvested by the company.
Friday’s closing price is 17% higher than the $48 median analyst estimate, highlighting how much deal prospects now influence the share price.
Risks: A transaction is not guaranteed. Challenges such as securing financing, navigating regulatory hurdles, potential board opposition, and sluggish checkout expansion might cause PayPal to revert to standalone valuations.
PayPal is set to start its earnings call on Tuesday at 8:00 a.m. ET. Investors will focus on metrics such as checkout growth, margin dollars, and potential strategic insights.
Related articles: NASDAQ:PYPL
