What’s driving PayPal’s surge today?

crypthub

about 9 hours ago

PayPal Stock Surge

PayPal shares jumped nearly 7% after Bloomberg reported that Stripe is exploring a possible acquisition. Talks are in early stages, with Stripe weighing a full purchase or only selected assets. The rally followed a recent slump that saw the stock fall more than 19% year‑to‑date and about a third in 2025. Weak profit guidance and a recent CEO change, naming HP’s Enrique Lores, added to the turmoil.

Stripe’s Valuation and Strategy

Stripe’s market value rose to $159 billion after a secondary stock sale, up sharply from $91.5 billion a year earlier. The fintech firm expects its revenue suite to hit a $1 billion annual run rate this year and recently acquired billing startup Metronome. Ranked 10th on CNBC’s Disruptor 50, Stripe’s leadership says an IPO is not a current priority while it evaluates the PayPal deal.

Analyst Perspectives and Market Context

Analysts view PayPal as deeply undervalued, noting its $2 trillion annual transaction volume and ownership of Venmo, a leading U.S. P2P network. They highlight PayPal’s strategic network assets as attractive to firms seeking a larger role in commerce. The renewed interest comes as AI‑related risk reports have unsettled payment‑software stocks, warning that future AI agents could pressure transaction fees.