Feb. 24 at 8:54 PM
PayPal jumped after reports that the payments giant is drawing takeover interest, with at least one rival considering a bid for the entire
$40.6 billion company and others eyeing specific assets. Shares are down 25% this year and 41% over the past 12 months, leaving valuation at roughly 7x estimated 2027 earnings—well below its five-year average near 20x.
Bulls argue the stock is “deeply undervalued,” citing PayPal’s nearly
$2 trillion in payment volume, ~440 million active accounts, and ownership of Venmo, one of the leading U.S. peer-to-peer platforms. PayPal is often grouped among the four major global payment networks alongside Visa , Mastercard , and American Express.
Bears counter that PayPal’s core branded checkout business continues to lose share amid weaker consumer experience and higher merchant costs, pressuring growth and margins.
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