Stripe Explores PayPal Acquisition as Leadership Shuffle Sparks Price-Target Cuts
Stripe is in early-stage talks to acquire PayPal, briefly boosting shares, as PayPal replaced CEO Alex Chriss with HP Inc veteran Enrique Lores. Analysts cut ratings and targets—Canaccord lowered its target from $100 to $42—as the stock has slid 37% over the past year.
1. Early-Stage Acquisition Talks
Stripe has held preliminary discussions about acquiring PayPal, including consideration of a full buyout or an asset purchase. These talks remain at an early stage, but they briefly lifted PayPal shares on the back of takeover speculation.
2. Leadership Change
PayPal replaced CEO Alex Chriss with HP Inc executive Enrique Lores, effective immediately. The board aims to leverage Lores’s experience leading a technology company to drive growth in PayPal’s core payment and checkout services.
3. Analyst Reactions
Several analysts responded to takeover and leadership news by cutting ratings and price targets, with Canaccord lowering its target from $100 to $42. Other firms have followed suit, citing slowing growth in branded checkout and a softer fiscal outlook.
4. Stock Performance
PayPal’s share price has fallen about 37% over the past year, trading below both its 50-day and 200-day moving averages. The downtrend underscores investor caution, despite periodic rallies on news-driven events.