PayPal Says $53 Billion Stripe-Advent Takeover Offer Undervalues It

Anushka Dutta Tue, July 21, 2026 at 10:41 AM PDT | 4 min read

Ticker Performance:

• PYPL: -0.61%
• STRI.PVT: N/A
• KLAR: -6.20%
• AAPL: -0.56%
• SHOP: -3.75%

Earlier this month, shares of fintech firm PayPal Holdings (PYPL) surged after reports emerged that rival payments company Stripe and private equity firm Advent International had submitted a $53 billion takeover bid. The reported offer values PayPal at $60.50 per share, representing a 28% premium to its July 14 closing price.

However, according to a new report, PayPal's board considers the bid to undervalue the company, potentially setting the stage for further negotiations. PayPal has not formally responded to the proposal. The potential acquisition comes as the payments giant loses ground to competitors, including Apple (AAPL), Shopify (SHOP), buy-now/pay-later firms such as Affirm (AFRM) and Klarna (KLAR), and peer-to-peer money transfer services like Cash App and Zelle.

This year, PayPal appointed Enrique Lores as CEO to revitalize the company's fundamentals. Lores has pursued an AI-driven approach to reinvent the digital payments stalwart, expecting cost savings that can be reinvested into the business.

About PayPal Stock

PayPal is a global financial technology company operating a digital payments platform. Its services support checkout, peer-to-peer transfers, merchant payment processing, and other commerce-related tools across multiple markets. Headquartered in San Jose, California, the company has a market capitalization of $50.12 billion.

PayPal's stock has declined due to slowing growth, cautious guidance, and investor demand for clearer evidence that the core payments business can reaccelerate. Recent results have also raised concerns about margins and near-term execution.

Over the past 52 weeks, the stock has fallen 25.6% and is down 4.6% year-to-date (YTD). Shares reached a 52-week low of $38.46 on February 12 but have since risen 45% from that level. Amid potential acquisition interest, the stock has climbed 31% over the past month.

On a forward-adjusted basis, PayPal's price-to-earnings (non-GAAP) ratio of 10.70x is below the industry average of 11.37x.

PayPal Reported Q1 Results with Focus on Strategic Priorities

For the first quarter, PayPal emphasized that it is taking deliberate steps to sharpen its strategy and simplify its organization. The company aims to reinject growth into its system and improve its cost structure to expand margins.

Key Q1 Metrics:

• Total Payment Volume (TPV): $463.96 billion, up 11% year-over-year (YOY)
• Active Accounts: 439 million, up 1% YOY
• Net Revenues: $8.35 billion, up 7% YOY (exceeding the $8.05 billion analyst consensus)
• Transaction Margin Dollars: $3.81 billion, up 3% YOY

The modest top-line growth has impacted PayPal's bottom line. Non-GAAP operating income fell 5% YOY to $1.54 billion. However, non-GAAP EPS came in at $1.34 for the quarter, up 1% YOY and above the Street's estimate of $1.27.

For the current fiscal year, PayPal expects non-GAAP EPS to decline in the low single digits or be slightly positive.

Wall Street Expectations:

• Fiscal Q2 2026 (reporting July 28): EPS projected to decline 8.6% YOY to $1.28
• Fiscal 2026 Full Year: EPS expected to grow marginally to $5.32
• Fiscal 2027: EPS projected to increase 8.3% to $5.76

What Do Analysts Think About PayPal Stock?

This month, analysts at Barclays upgraded PayPal from "Underweight" to "Equal Weight," reflecting a more neutral outlook on the stock amid the ongoing acquisition speculation and strategic turnaround efforts.