TLDR
- PayPal (PYPL) stock rose about 5% on Friday to $55.13.
- Traders cited a Betaville “uncooked” alert pointing to a possible all-stock takeover bid from a West Coast tech company.
- PayPal’s board reportedly wants an all-cash deal, not stock.
- The Stripe-Advent consortium walked away last month after a dispute over a $2 billion break fee, ending a bid worth over $50 billion.
- Deutsche Bank raised its price target on PYPL to $55 from $50, keeping a Hold rating.
PayPal (PYPL) stock climbed roughly 5% on Friday, trading at $55.13 as takeover chatter swirled around the fintech company.
Traders pointed to a Betaville “uncooked” alert circulating Friday morning. The alert suggested a U.S. technology company based on the West Coast could be weighing an all-stock takeover of PayPal.
That’s a different structure than what PayPal’s board reportedly wants. Sources say the board prefers an all-cash transaction over a stock swap.
This isn’t the first takeover talk PayPal has faced this year. Stripe and private equity firm Advent had been in discussions to buy the company outright.
Deal Talks Fell Apart Over Fees
Those talks reportedly hit a snag over a $2 billion break fee. If the deal collapsed, someone would have owed that fee, and neither side could agree on terms.
The Stripe-Advent consortium had considered paying up to $68 per share in cash. That would have valued PayPal at more than $50 billion.
Last month, the consortium reportedly abandoned the pursuit entirely. PayPal has been searching for a suitor since.
PayPal did not respond to requests for comment on the latest speculation, according to Benzinga.
Separately, Great Hill Capital Chairman Thomas Hayes floated his own idea this week. He suggested Meta Platforms (META) should be the one to buy PayPal.
Hayes pitched a price tag of $90 billion. He said that works out to roughly a 7% free-cash-flow yield, calling it accretive whether Meta paid in cash, stock, or some mix of both.
His reasoning centers on data. Hayes argued that pairing PayPal’s transaction data with Meta’s ad business could build advertising capabilities on par with Amazon (AMZN).
He estimated a three-to-four-year payback window on that $90 billion price. Hayes framed the idea as him thinking out loud as a shareholder, not as insider knowledge of any deal.
Where the Stock Stands Technically
PYPL is trading about 3% above its 20-day moving average of $53.45. It’s still about 3% below its 50-day average of $56.79, putting the stock in what chart watchers call a decision zone.
The longer-term picture looks steadier. Shares sit roughly 8% above the 100-day average and 9% above the 200-day average.
Relative strength index (RSI) reads 50.75. That’s neutral, not overbought or oversold.
The moving averages tell a mixed story. The 20-day average is still below the 50-day average, a bearish short-term signal.
But the 50-day average remains above the 200-day average following August’s golden cross. That’s typically viewed as a longer-term bullish setup.
Traders are watching whether PYPL can reclaim the 50-day level and hold it. Doing so would turn Friday’s bounce into something more durable.
Key resistance sits at $59.50, a ceiling tied to a recent stall zone. Key support sits at $52, near where the 20-day and 200-day averages converge.
Separately, Deutsche Bank raised its price target on PayPal to $55 from $50 on Friday. The bank kept its Hold rating unchanged.
PayPal shares were up 4.80% to $55.13 at the time of publication Friday.
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