New York, Feb 26, 2026, 08:42 EST — Premarket
- PayPal shares ticked up ahead of the bell, adding to a two-session rally ignited by speculation of a possible takeover.
- Stripe is reportedly considering a move for PayPal, or parts of the business, a report said. Both firms declined to comment.
- PayPal’s latest embedded-payments partnership is in focus for traders, with the next earnings call approaching.
PayPal shares nudged higher in premarket action Thursday, picking up 0.2% to $47.41, with renewed chatter swirling about a possible takeover bid from privately owned Stripe. The stock had finished Wednesday at $47.32. (Investing)
This is significant for PayPal, now once again circling the “strategic alternatives” conversation, regardless of its own intentions. Shares have slumped for months, the CEO seat just changed hands, and each whiff of a possible suitor draws in quick-trading investors. That also puts pressure on patient shareholders to recalculate: Is PayPal worth more in pieces or left alone?
The timing isn’t great for management. PayPal is out pitching operational tweaks and fresh distribution moves, but the market keeps drifting back to deal calculus, possible asset sales, and the ever-present question of who would actually pay up.
This week, Bloomberg News said Stripe is weighing a possible move to buy PayPal outright or snap up certain assets, though Reuters was unable to confirm the report. Both companies kept quiet when asked for comment, according to Reuters. Stripe, for its part, landed a $159 billion valuation in a tender offer on Tuesday. (Reuters)
On Wednesday, PayPal pointed to a more immediate trigger: the company rolled out an embedded integration with Rainforest, allowing vertical software platforms to support PayPal, Venmo, and PayPal Pay Later all in one checkout. “Vertical software is a strategic growth area for PayPal,” said Taira Hall, senior vice president and head of SMB commercial, in the release. (PayPal Newsroom)
PayPal is leaning harder into software-driven commerce, looking for growth as competition piles up around its signature online checkout button. Big Tech wallets and other payment processors keep ratcheting up the pressure—speed, lower fees, where they land on checkout screens. The company has flagged that softer consumer spending has weighed on some areas of its business.
Thursday’s focus for traders: does the Stripe speculation actually lead somewhere? Any new reporting, actions from deal advisers, or hints that PayPal could look to offload assets instead of selling itself outright—those are the things to watch.
The risk here is simple enough: talks are still in the early stages and could easily collapse. If no agreement materializes, PayPal faces the same challenge as before—showing it can deliver profitable growth in a crowded field. The stock’s takeover premium could vanish just as fast as it appeared.
Looking ahead, PayPal’s Q1 2026 earnings call is locked in for May 5, with the webcast set for 8:00 a.m. ET. Management plans to discuss growth priorities and trends, and questions about potential inbound interest are expected to come up. (Pypl)
