New York, Feb 25, 2026, 18:53 EST — Trading after the bell.
- PayPal closed out the session up, but shares edged down in after-hours trading.
- Stripe remains in the spotlight as speculation swirls over a possible deal—or maybe even a split.
- PayPal’s new partnership with Rainforest introduces a fresh catalyst, with the CEO transition just ahead.
PayPal Holdings (PYPL) finished Wednesday’s session on Nasdaq with a 0.6% gain at $47.32, then edged down about 0.3% in the after-hours. The S&P 500 also moved higher.
The speculation is hitting just as both companies are shaking up management and battling for dominance in payments. Bloomberg News, on Tuesday, said Stripe is considering buying PayPal or parts of it; PayPal stock jumped nearly 7% after the news. Stripe, per a recent tender offer, carries a $159 billion valuation. PayPal’s market cap is a touch over $40 billion, LSEG data shows. Neither company would comment. Reuters could not independently confirm the Bloomberg report.
Just a day ago, Bloomberg reported that PayPal has been receiving unsolicited bids and sitting down with banks. One major competitor is sizing up the entire company, while other interested parties are focused on individual assets. PayPal stock is down roughly 85% from its mid-2021 highs — a tumble that’s starting to attract bargain-seekers and would-be acquirers.
PayPal tried to shift the narrative Wednesday, announcing a new product partnership. The company said it’s joining forces with Rainforest, an embedded payments provider, enabling vertical software platforms to integrate PayPal, Venmo, and the PayPal Pay Later buy-now-pay-later feature alongside other payment options. “Vertical software is a strategic growth area for PayPal as more commerce moves directly into software,” said Taira Hall, senior vice president and head of SMB commercial. Rainforest CEO Joshua Silver claimed the deal gives platforms “instant access to PayPal without extra onboarding steps.” PayPal Newsroom
Think of embedded payments as plumbing—payments built right into business software, rather than delivered as a bolt-on extra. For PayPal, striking deals like this opens up distribution via software providers handling invoicing and workflow for merchants already.
Wall Street can’t quite agree on whether takeover chatter will translate into an actual deal. Mizuho sticks with an Outperform and sees shares at $60. Truist? Still a Sell, holding firm on $39, according to Barron’s. Some analysts, though, suggest spinning off assets like Venmo might make more sense than a full acquisition.
PayPal’s board fired CEO Alex Chriss on Feb. 3, slashed its profit forecast for 2026, and shares tumbled 19% right after. Citing a squeeze in retail spending, the company named CFO Jamie Miller interim CEO, handing the reins to Enrique Lores effective March 1.
Stripe might genuinely be interested, but mounting a full offer isn’t straightforward. As a private company, Stripe would have to address major financing hurdles to buy PayPal. There’s also the question of regulatory scrutiny, considering both firms operate heavily in merchant payments.
Bulls face a clear hazard: no official news may turn up. Should the deal talk evaporate and PayPal stay silent about any review, shares could quickly revert to trading on fundamentals — execution, competition, and the durability of consumer spending.
Thursday’s in focus as traders await any confirmation on strategic moves with Lores set to step in March 1. Eyes are also on PayPal’s appearance at the Wolfe Fintech Forum March 10 for possible new commentary. After that, the next big date is the first-quarter earnings call May 5.
