Stock Market Today, Feb. 23: PayPal Jumps After Reports of Takeover Interest From Major Rival

The Motley Fool

by newsfeedback@fool.com (Josh Kohn-Lindquist)

February 23, 2026

AI-Generated Deep Dive Summary

PayPal (NASDAQ: PYPL) saw its stock price surge by over 5% on February 23, driven by reports of potential takeover interest from a major rival or banking peer. The company’s shares closed at $44.05, reflecting a significant jump following rumors that at least one suitor had expressed unsolicited interest in an acquisition. Trading volume skyrocketed to 75.3 million shares, more than double its three-month average of 21 million shares, as investors closely monitored developments surrounding this high-profile opportunity. The catalyst for PayPal’s stock rally appears linked to its challenging performance over the past year, with shares down 44% since last year and nearly 86% below all-time highs. This sharp decline has made the payments giant an attractive target for potential acquirers, particularly given its current valuation of just 7.7 times free cash flow—a figure that suggests it could be a financially viable acquisition. The timing of these rumors also comes three weeks after PayPal appointed Enrique Lores as its new CEO, raising questions about whether this leadership change has sparked renewed interest from competitors. In the broader financial landscape, the S&P 500 and Nasdaq Composite both ended the day lower, with the former falling 1.01% to 6,840 and the latter dropping 1.13% to 22,627. While PayPal’s stock rose amid takeover speculation, peer Adyen saw its shares drop by over 5%, highlighting divergent investor sentiment in the financial technology sector. This disparity underscores the ongoing reassessment of digital payments growth and competitive positioning among stakeholders. For finance enthusiasts, this situation highlights the interconnected dynamics of mergers and acquisitions (M&A) in the fintech space. The potential for a PayPal acquisition not only reflects the company’s current valuation but also signals broader trends in the payment processing industry. Investors will likely remain keenly focused on whether formal M&A proposals materialize or if PayPal’s board responds to these rumors, which could shape the future trajectory

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Originally published on The Motley Fool on 2/23/2026