Market cap halved, attracting potential buyers! Rumors of acquisition boost PayPal(PYPL.US) against the trend with a rebound

According to sources familiar with the matter, after a sharp decline in stock price that wiped out nearly half of its market value, digital payments pioneer PayPal (PYPL.US) is attracting acquisition interest from potential buyers. Boosted by this news, the stock closed up 5.76% on Monday, reaching an intraday high of 9.7%. Meanwhile, other payment companies’ stocks generally fell on Monday due to a report from Cattrina Research highlighting the potential risks artificial intelligence (AI) could pose to various sectors of the global economy.

Sources say that the San Jose, California-based company has met with multiple banks after receiving unsolicited approaches. At least one major competitor is evaluating an overall acquisition of the company, while some other potential buyers are only interested in certain assets of PayPal. Insiders caution that current buyer interest remains preliminary and a deal is not guaranteed.

PayPal Stock Has Fallen Nearly 50% Over the Past 12 Months

Over the past year, PayPal’s stock has declined approximately 46%. Founded in the late 1990s, PayPal was an early pioneer in digital payments. However, the company is now facing difficulties as more customers turn to alternative payment methods.

Enrique Lores, the current chairman of the board, will assume the roles of President and CEO of PayPal starting March 1. He will need to address the company’s shortcomings in modernizing payment technology and the erosion of market share to competitors like Apple Pay and Google Pay.

Former CEO Alex Chriss was dismissed earlier this month after his transformation plan failed to meet expectations. The company’s profits and revenue for Q4 2025 fell short of analyst forecasts, and payment transaction volumes continued to slow.

However, Mizuho Securities analysts stated that, given PayPal’s status as “one of the world’s four major payment networks,” the company is currently “severely undervalued.” Its annual transaction volume approaches $2 trillion, and it owns Venmo, “America’s most influential P2P network.” KBW analysts also noted in a client report that PayPal’s network assets are scarce and strategically valuable, especially for companies “trying to expand their role in the agency-based commerce sector.”