PayPal Rejected a $53 Billion Takeover Bid: Is the Stock Undervalued?

Summary

PayPal Today$55.85 -0.97 (-1.71%) As of 07/21/2026 04:00 PM Eastern52-Week Range$38.46▼$79.50Dividend Yield1.00%P/E Ratio10.48Price Target$54.61 Since its founding in December 1998, PayPal NASDAQ: PYPL has grown alongside e-commerce into a financial services giant. Today, the company’s market cap exceeds $50 billion. But along the way, the stock has not been kind to investors. Following its return to public trading in July 2015 after being spun off from eBay NASDAQ: EBAY, PayPal surged to its all-time high of $308.53 per share in July 2021. But it has been a difficult ride for shareholders, with PYPL down nearly 82% since then.Get PayPal alerts:Sign Up PayPal Holdings, Inc. (PYPL) Price Chart for Wednesday, July, 22, 2026 But last week, long-term holders were treated to an unexpected catalyst: Stripe and private equity firm Advent International proposed a joint $53.4 billion acquisition of PayPal. Shares rose up as much as 19% in pre-market trading on July 15, finishing the day up nearly 16%. In the days that followed, PayPal’s board declined the offer, stating that the bid was too low. Nonetheless, a deal could still materialize. In the meantime, shares have continued to climb above their pre-bid level. Here’s what investors need to know about the digital payment platform’s future, and whether or not the stock’s recent turnaround can be sustained. Details of the $53 Billion Bid PayPal Passed OnPayPal Today$55.85 -0.97 (-1.71%) As of 07/21/2026 04:00 PM Eastern52-Week Range$38.46▼$79.50Dividend Yield1.00%P/E Ratio10.48Price Target$54.61 Seeing a potentially mispriced company, the offer was priced at $60.50 per share—about 6.5% higher than the stock's July 20 closing price, and around 28% above its July 14 pre-announceemnt close. Had the bid been accepted, at $53.4 billion, it would have been the largest fintech acquisition in history. Stripe and Advent reportedly planned to hold equal ownership stakes in PayPal rather than divide the company’s assets. The move makes...