Why PayPal Rallied Today, Even as Most Financial Stocks Plunged

Bloomberg reported that PayPal is attracting attention from suitors.Shares of PayPal (PYPL +5.74%) rallied on Monday, up as much as 9.7% at one point, before retreating to a 6.2% gain as of 2:00 p.m. EDT. Much of the financial sector was plunging today, so PayPal's gains stood out. Indeed, there was an idiosyncratic news story about the fallen payments giant today, as Bloomberg reported on potential takeover interest in the company. Given PayPal's recent plunge in value and the resignation of its former CEO, it's no surprise to see a bounce on buyout rumors. ExpandNASDAQ: PYPLPayPalToday's Change(5.74%) $2.39Current Price$44.04Key Data PointsMarket Cap$38BDay's Range$40.53 - $45.6752wk Range$38.46 - $79.50Volume3.4MAvg Vol20MGross Margin41.78%Dividend Yield0.34% PayPal is attracting suitors, says Bloomberg Today, Bloomberg reported that according to people familiar with the matter, one large competitor is considering buying PayPal outright, while others may be considering acquiring certain parts of the company. Of note, PayPal owns several subsidiaries that may be up for sale, from the original and familiar branded one-click checkout for e-commerce transactions, the Venmo P2P payments platform, PayPal credit lending, the Braintree merchant acquirer and payment processor business, and others. PayPal's stock is down a stunning 86.5% from its all-time high and another 28.7% this year, following its disastrous Q4 earnings report. In that report, PayPal missed both revenue and adjusted earnings expectations, provided weaker-than-expected guidance, and announced that former CEO Alex Chriss would step down after two-and-a-half years, as his turnaround plan failed to gain traction. Image source: Getty Images. PayPal investors may get a reprieve from today's levels PayPal's stock currently trades at a highly discounted 8.2 times earnings, suggesting an extremely pessimistic outlook. While PayPal did guide for a slight decline in earnings per share for 2026, it is far from a total implosion. Investors may therefore get a reprieve on a sale of the entire business, or specific assets. Still, hopes for a turnaround and significant share gains without a sale seem very far off, and unlikely to happen anytime soon, if at all.Read NextFeb 19, 2026 •By Neil PatelBear Market Sell-Off: Is PayPal Stock a Buy After Its 20% Plunge?Feb 17, 2026 •By Thomas NielBetter Fintech Stock: PayPal vs. SoFiFeb 16, 2026 •By Thomas Niel3 Magnificent Stocks to Buy That Are Near 52-Week LowsFeb 9, 2026 •By Neil PatelWall Street Erases $325 Billion From This Once Unstoppable CompanyFeb 7, 2026 •By Neil PatelIs PayPal an Underrated Financial Stock Investment Play?Feb 3, 2026 •By Joe TenebrusoWhy PayPal Stock Crashed TodayAbout the AuthorBilly Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.TMFStoneOakStocks MentionedPayPalNASDAQ: PYPL$44.04 (+5.74%) $+2.39*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.