PayPal’s Board Rejects $53 Billion Stripe-Advent Bid, Betting on a $70-a-Share Future
Published on 07/22/2026 at 18:24 | Redaktion boerse-global.de
PayPal’s board has thrown down the gauntlet. On July 21, 2026, directors formally rejected a $53 billion joint takeover offer from Stripe and Advent International, which valued the payments giant at $60.50 per share. The message was blunt: that’s not enough. Internal chatter suggests the board is holding out for roughly $70 a share — a level that would mark a return to the stock’s 52-week high of €70.78, touched back in October 2025 when PayPal was still worth around $360 billion.
The decision has electrified the stock. Over the past 30 days, shares have surged 31.7% to €48.81, a rally almost entirely fueled by takeover speculation and the board’s defiant stance. Yet the longer view tells a different story: the stock is still down 24.23% over the past twelve months, a reminder that the recent pop rests on a single event rather than sustained operational momentum.
The Prize Beneath the Surface
Stripe and Advent weren’t just after PayPal’s 400 million-plus user accounts. The real target, according to both reports, is PYUSD, PayPal’s proprietary stablecoin. Stripe has already signaled its appetite for digital currency infrastructure with the recent acquisition of Bridge, a stablecoin platform. PYUSD’s integration into Visa’s settlement network makes it a ready-made bridge between traditional payments and the digital economy — precisely the kind of asset that could give Stripe a dominant position in global payment rails.
A combined Stripe-PayPal entity would have processed roughly $3.7 trillion to $4 trillion in annual payment volume, representing about 3% of global economic output. That scale would have created an unmatched settlement network. PayPal’s board, however, believes it can unlock that value on its own — and is betting the next quarterly report will prove it.
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The CEO’s Gamble
The weight of that bet falls squarely on CEO Enrique Lores, who took the helm in March 2026. He’s already pushing through a restructuring plan that includes cutting 20% of the workforce and splitting the business into three independent units. The board is being advised by Goldman Sachs and Evercore, both of which back the position that the Stripe-Advent offer undervalues the company.
Lores needs to show that the accelerated revenue growth and improved free cash flow from the first quarter weren’t a one-off. The first quarter delivered earnings per share of $1.34. If the second-quarter numbers, due July 28, confirm that trajectory, the rejection of the $60.50 bid will look like a savvy negotiating move. If they don’t, pressure will mount to return to the bargaining table.
Bulls vs. Bears: Two Very Different Stories
The bull case rests on strategic assets and restructuring momentum. ARK Invest analysts point to Venmo as the crown jewel — a social payments platform with over 400 million accounts that would be nearly impossible for any competitor to replicate. If Lores can stabilize margins in the branded checkout business while expanding PYUSD, the $70 target starts to look plausible. The stock has already climbed more than 50% from its 52-week low of €32.42.
The bear case is stark. The 14-day relative strength index sits at 75.8 to 76.9, firmly in overbought territory. If the takeover premium evaporates, a sharp pullback could follow. The average analyst price target is just €45.92, roughly 6% below current levels. Meanwhile, the branded checkout business faces relentless pressure from Apple Pay, Google Pay, and Shop Pay. Shopify has reportedly been offering merchants fee discounts to disable Braintree, PayPal’s own checkout subsidiary.
Some analysts describe PayPal’s core checkout business as a melting ice cube — still large, but shrinking steadily. The 200-day moving average sits at €44.67, a level that could act as a floor if the stock retreats.
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The July 28 Verdict
Short-term direction hinges on two factors: whether Stripe, Advent, and Block — which has already committed $17 billion in equity to the consortium — return with a higher offer, and what the second-quarter earnings reveal. As long as the market prices in a revised bid closer to the board’s $70 target, the stock should hold above its 50-day moving average of €39.12.
But the real catalyst comes July 28. If PayPal loses more checkout market share or misses earnings expectations, the board’s negotiating position crumbles. If it beats expectations, the rejection of the $60.50 bid will be vindicated — at least for now.
Whether a new bidder emerges or the existing consortium sweetens its offer remains the open question. Either way, the next few weeks will determine whether the board’s poker hand was a masterstroke or a costly bluff.
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