PayPal shares saw a significant jump on Tuesday following reports that payment processing firm Stripe is looking into buying the company. The stock went up by 6.74% to close at $47.02. This news comes just as PayPal is preparing for a leadership change, catching the attention of investors and market analysts who feel the company is currently undervalued.
What do the reports say about the deal?
According to sources familiar with the matter, Stripe is in the early stages of considering an acquisition of PayPal. While Stripe is looking at the possibility, reports suggest they are not the only ones interested. At least one other large rival is looking at buying the whole company, while other potential buyers might only want specific parts of PayPal’s business.
It is important to note that these discussions appear to be in the preliminary stages. Neither company has officially confirmed these talks, and a PayPal spokesperson declined to comment on the matter when asked by the media. Bernstein analyst Harshita Rawat also mentioned that private equity firms could be potential buyers due to PayPal’s clean balance sheet.
How is the stock performing?
The market reacted strongly to the news, with PayPal shares climbing 6.74% to close at $47.02 on February 24, 2026. At one point during the day, the stock had jumped nearly 10%. This is a big moment for the stock, which had previously dropped more than 85% from its peak in 2021.
The company now has a market value of just over $40 billion. Analysts from Mizuho noted that the stock is currently deeply undervalued considering it runs one of the few global payment networks. Amidst this market activity, the company is also preparing for a leadership transition. Enrique Lores is set to take over as the new President and CEO on March 1, 2026, replacing Alex Chriss.
