Key Stats for PayPal Stock
- Price Change: +6.73%
- Current Price: $47.01
- Valuation Model Target: $64.87
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What Happened?
PayPal (PYPL) shares surged 6.73% on February 24, 2026, closing at $47.01 after reports surfaced regarding a potential acquisition.
Multiple suitors are reportedly interested in acquiring the digital payments pioneer, triggering a massive short squeeze among traders.
This event follows a challenging period for the company, which recently announced a major leadership transition during its fourth-quarter earnings call.
Interim CEO Jamie Miller confirmed that the Board appointed Enrique Lores as the next President and CEO, effective March 1.
Miller stated verbatim: “The Board’s appointment of Enrique reflects a clear commitment to strengthening performance.”
The leadership change comes as PayPal works to address execution issues within its online branded checkout division.
Despite solid performance in other areas, branded checkout volume grew just 1% on a currency-neutral basis.
Miller added verbatim: “We have not moved fast enough or with the level of focus required, and we are taking immediate steps to address that reality.”
As a result, management withdrew its previous long-term financial outlook.
See analysts’ growth forecasts and price targets for PayPal stock (It’s free!) >>>
Is PayPal Undervalued Today?
The TIKR Model suggests the market is deeply discounting the underlying profitability of PayPal’s broader ecosystem due to the narrow focus on branded checkout struggles.
The model projects a target price of $64.87, representing a 38% potential total return from current levels.
While the legacy branded checkout division faces headwinds, the company’s other segments are generating massive, highly profitable growth.
Venmo revenue grew approximately 20% to $1.7 billion in 2025, and the Buy Now, Pay Later segment delivered over $40 billion in total payment volume.
Interim CEO Jamie Miller detailed exactly why the company’s diversified asset base justifies this upside potential even while the core checkout business is retooled.
Miller stated verbatim: “Even with a low mid-single-digit branded checkout profile in 2025, we delivered very solid transaction margin dollar growth. We delivered mid-teens earnings per share growth.”
This proves the underlying financial engine remains highly intact, giving the incoming CEO a strong foundation to execute the turnaround.
Read the full PayPal Transcript on TIKR to see the revenue breakdown >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies PayPal as a highly profitable platform currently undergoing a complex strategic transition.
- Target Price: $64.87
- Current Price: $47.01
- Annualized Return (IRR): 6.9%
Robust Free Cash Flow: Despite the narrative surrounding market share losses, PayPal remains a cash-generating machine. The company produced $6.4 billion in adjusted free cash flow for the full year 2025. This provides management with significant flexibility to fund product improvements, invest in co-marketing campaigns, and execute massive share repurchases.
The Venmo Monetization Engine: Venmo has successfully evolved from a peer-to-peer payment app into a monetized commerce platform. With over 100 million active accounts, the platform delivered 13% total payment volume growth in the fourth quarter. The increasing adoption of the Venmo debit card and “Pay with Venmo” features represents a highly profitable shift in revenue composition.
Conclusion: A foundational digital payments platform navigating a crucial turnaround. PayPal offers a projected 38% total return potential. The path to $64.87 is supported by resilient free cash flow, the continued monetization of Venmo, and a new executive team focused on accelerating disciplined execution.
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How Much Upside Does PayPal Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
