Shares in PayPal (PYPL.US) rose by nearly 6.7% yesterday to around $47, with cumulative gains over the last two days reaching 12-13% following reports by Bloomberg of preliminary interest in an acquisition by Stripe. Stripe is considering acquiring all or selected assets of PayPal, including Braintree, which would allow them to join forces in e-commerce (approximately 50% of global transaction volume). PayPal has been struggling for some time. Its Q4 results fell short of analysts’ expectations, and the company has been losing market share in the payments market to Apple Pay, Google Pay and even Revolut for some time. However, such a transaction could have a negative impact on Adyen. If Stripe buys all or part of PayPal, as reported by Bloomberg News, and Stripe’s transaction volume increases to approximately $3.6 trillion compared to $1.6 trillion for Adyen in 2025, competition for merchants and platform partners, Adyen’s core business, could potentially intensify.
In this regard, it is also worth considering whether the merger of these two companies would attract the attention of antitrust authorities.
However, it is worth remembering that the talks appear to be at an early stage, so much could still change in terms of the transaction. On the other hand, the deep discount on the shares of PayPal, a company struggling with business difficulties, creates a potentially lucrative acquisition target. It is worth keeping a close eye on any headlines regarding a takeover by Stripe or another entity, as this is currently the main catalyst for price changes on PYPL shares.
The valuation of the company against a comparative background and with a summary of forecasts for the future seems to indicate an increased discount to the average value. Announcements of the acquisition are theoretically positive news for the company’s shares, but on the other hand, it is worth remembering that if it does not go ahead, the company’s negative financial results, which have driven the downward trend in its value and could potentially continue to do so, may once again come to the fore. Source: Bloomberg Financial Lp
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