PayPal surges 23% this week on $60.50/share buyout offer from Stripe and Advent International

By Josh Kohn-Lindquist, The Motley Fool Published: July 17, 2026 at 9:16 AM PDT | 3 min read

• PYPL -0.15%
• NVDA -1.11%
• STRI.PVT

Shares of popular digital payments platform PayPal (NASDAQ: PYPL) soared 23% this week (as of noon ET on Friday) after payments peer Stripe and private equity firm Advent International offered to buy the company for $60.50 per share. After months of speculation about a potential union between the companies, the market now has a tangible offer price to digest.

However, while shares have surged on the potential deal, it appears far from a certainty. According to Reuters, a person familiar with the matter said PayPal's board believes the deal undervalues the company's long-term potential as it executes its turnaround strategy. The board is not alone in this view.

Michael Burry Weighs In

Famed investor Michael Burry — known for his bet against the housing market featured in The Big Short — believes the deal greatly undervalues PayPal. Using his intrinsic value methodology, Burry estimates PayPal is worth closer to $110 or $115 — roughly 80% higher than the current $60.50 offer.

With PayPal trading at just 10.5 times earnings — even after this week's rise — the author notes they agree with Burry's assessment and intend to hold their shares until the situation resolves.

A "Sum-of-the-Parts" Perspective

PayPal's growth story may be in the rearview mirror, but the market's pricing already reflects that, in the author's opinion. This is especially true when viewing PayPal's businesses from a "sum-of-the-parts" perspective:

• PayPal – Namesake payment processing
• Braintree – White-label operations
• Financial services – Growing suite of offerings
• Venmo – Peer-to-peer payments app with nearly 100 million users

While PayPal as a whole is no longer a growth story, Venmo has grown total payment volume by double digits for six straight quarters and would likely be highly appealing to Stripe.

What's Next?

Time will tell whether higher offers emerge for PayPal's shares. In the meantime, the author is comfortable holding PYPL shares, viewing them as undervalued — though a declined offer could weigh on the stock.

Should You Buy PayPal Stock Right Now?

Before you buy stock in PayPal, consider this:

The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now — and PayPal was not among them. The 10 stocks that made the cut could produce significant returns in the coming years.

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