Why PayPal Stock Just Went to the Moon
Key Points
Private companies Stripe and Advent may bid $53 billion to acquire PayPal.
Block may also participate in the acquisition.
The buyout offer values PayPal stock at a cheap 11.3 times earnings.
- 10 stocks we like better than PayPal ›
PayPal Holdings (NASDAQ: PYPL) stock exploded 17.1% higher through 10:35 a.m. ET Wednesday on reports the e-payments company has received a buyout offer from privately held companies Stripe and Advent, perhaps with assistance from publicly traded Block (NYSE: XYZ).
The reported buyout price: $53 billion.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: PayPal.
PayPal: Buy it now?
As CNBC reports this morning, Stripe, Advent, and Block have offered to acquire PayPal for $60.50 per share, nearly 28% above PayPal's closing price last night. $17 billion of the total $53 billion purchase price would be paid in stock, and the rest in cash.
Not all the details of the transaction are clear, and none of the companies reportedly involved are commenting on the reported acquisition, which Reuters first reported. Regardless, with PayPal stock down 35% over the past year (even after today's jump) versus a 20% gain for the broader S&P 500, PayPal shareholders are finally seeing a light at the end of the tunnel and hoping a buyout from Stripe and Advent may save them.
What's next for PayPal?
But is this light the tunnel exit, or an oncoming train?
According to the CNBC report, PayPal has received the offer and plans to discuss it at a board meeting on July 20, so the answer should come soon. The good news is that with PayPal stock trading at less than 9x earnings at present -- and only about 11.3x earnings at the reported purchase price -- the stock looks cheap, and there's good reason to believe Stripe, Advent, and Block would be interested in snapping up PayPal on the cheap.
The bad news is that if PayPal's board thinks it's too cheap, it might refuse to sell -- and if that happens, PayPal's stock price could go right back to where it was yesterday. Caveat investor.
Should you buy stock in PayPal right now?
Before you buy stock in PayPal, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PayPal wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,542!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,299,961!*
Now, it’s worth noting Stock Advisor’s total average return is 931% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block and PayPal. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
Recommended Articles
