PayPal Acquisition: Daylight Robbery That Won't Fly (Rating Upgrade)

PayPal gets a $60.50/share Stripe-Advent buyout offer (28% premium) but may undervalue PYPL vs. $75 fair value. Click to read the latest analysis on PYPL stock.

PayPal (PYPL), one of my smaller positions, recently got a surprise boost, which only brought me back to break-even, and that is the supposed buyout offer by a couple of big players in the financial space and private equity. I wanted to go Summary - PayPal received a $60.50/share buyout offer from Stripe and Advent, representing a 28% premium but still undervaluing the company. - Stripe seeks PYPL's consumer wallet scale and merchant network, while Advent aims for operational turnaround and value unlocking typical of private equity.

- Despite recent operational challenges, PYPL generated $1.1B in Q1 operating cash flow and is expected to deliver $6B in 2026 adjusted free cash flow. - My fair value estimate for PYPL is $75/share, making the current offer a significant undervaluation and unlikely to be accepted by the board or shareholders.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).

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