New York, Feb 24, 2026, 11:13 EST — Regular session
- PayPal shares slipped 1.4% to $43.42, giving back some of the previous session’s buyout-fueled gains.
- Speculation around a possible takeover continues to put the spotlight on PayPal’s next move: asset sales or hanging onto the full business.
- Watch for any official strategic action, as well as the May 5 earnings call, as the next possible catalysts.
Shares of PayPal Holdings dropped 1.4% to $43.42 by 11:13 a.m. EST on Tuesday, pulling back after a surge sparked by takeover speculation. The stock had ended Monday at $44.05. (Investing.com)
The latest market buzz circles PayPal, which is no stranger to upheaval this year. Earlier this month, the company swapped out CEO Alex Chriss, appointing board chair Enrique Lores to the top job. The move came as PayPal projected a mid-single-digit drop in 2026 adjusted profit per share — down from $5.41 in 2025 and trailing the $5.60 analysts were looking for. CFO Jamie Miller, currently filling in as interim CEO, put it plainly for analysts: “We saw pressure across our retail merchant portfolio.” (Reuters)
PayPal has been in talks with banks following buyout interest from potential suitors, Bloomberg News said. One major competitor is weighing a full takeover, while some others are eyeing specific assets. The process is still in its infancy, and a deal isn’t guaranteed, according to the report. PayPal wouldn’t comment, Reuters noted. (Reuters)
Monday’s report set off a scramble, with shares jumping up to 9%. Trading paused for a short time on volatility, Investing.com reported. (Investing.com)
The drop has some analysts arguing the stock is now cheap. Dan Dolev at Mizuho called the shares “deeply undervalued,” saying takeover rumors “highlight PayPal’s intrinsic value,” according to TipRanks. But not everyone is convinced this ends in a sale. Madison Suhr at Raymond James pushed back, writing that a PE buyout is unlikely given the $50 billion-plus price tag. She sees asset sales—like Venmo—as more plausible. (TipRanks)
Bernstein’s Harshita Rawat is floating the possibility of a sum-of-the-parts (SOTP) move at current prices, saying a break-up is now on the table. Rawat puts Braintree’s worth between $10 billion and $15 billion, while she tags Venmo at roughly $5 billion. The main PayPal business, she figures, lands between $20 billion and $25 billion, according to Investing.com. (Investing.com)
Bankers toss around “sum-of-the-parts” when they want to value a company’s pieces separately, not just slap on a single multiple. Braintree—PayPal’s unbranded processing business—moves card payments for merchants out of sight, whereas Venmo is the company’s U.S. peer-to-peer payment app. For investors, the discussion boils down to two routes: a clean buyout, or simply offloading pieces.
Wolfe Research thinks a buyer might pay “a few turns higher” than where PayPal currently trades. As for who could step up, the firm points to everything from e-commerce and brick-and-mortar acquirers to tech giants with big consumer ecosystems eyeing in-house payments. (TipRanks)
The risk? Nothing changes. PayPal’s sheer size means any merger with a big bank or tech player would likely draw a regulatory microscope. Growth in PayPal’s branded checkout has slowed, pressured by Apple Pay, Klarna, and other fresh faces in payments, the Financial Times said. (Financial Times)
Traders want more than talk at this point — they’re waiting on a formal review, an official filing, or word straight from the company. The closest event in sight: PayPal’s Q1 earnings call, set for May 5. (investor.pypl.com)
