PayPal Stock Drops as Buyout Plans Fall Through. Where Barchart Options Data Says PYPL Could Be Headed Next.

PayPal (PYPL) shares crashed on Aug. 28 following reports that a Stripe-led group has decided to abandon its $53 billion pursuit of the financial technology company. 

Still, options traders believe this dip is worth buying and PYPL will rip higher from current levels through the remainder of 2026. 

Following today’s decline, PayPal stock is down more than 8% versus the start of this year. 

Options Pricing Remains Bullish for PayPal Stock

According to Barchart, the put-to-call ratio on PYPL options contracts expiring mid-December is set at 0.52 currently, indicating a strong bullish skew. 

Data also pegs the upper price on those derivative contracts at $61.35, suggesting the fintech stock could rally nearly 14% within the next four months. 

Crucially, technical momentum also favors a rebound in PayPal shares. Despite the selloff, PYPL remains above its 100-day moving average (MA), indicating its broader uptrend remains intact. 

Plus, the firm’s relative strength index (RSI) has collapsed to mid-30s, reinforcing that it now sits just above the “oversold” territory, which tends to trigger a relief rally. 

Is It Worth Buying PYPL Shares Today?

PYPL stock bulls and KBW analysts point out that the board’s rejection of a $53 billion buyout as “insufficient” signals internal confidence that the market is severely undervaluing the core business.

Without M&A distortion, the fintech giant can channel its robust double-digit unlevered free cash flow (FCF) yield into buying back its own stock at depressed valuations rather than letting a private consortium acquire that cash flow on the cheap.

What’s also worth mentioning is that PYPL’s second-quarter metrics were stable, with total payment volume up 10% year-over-year ($486 billion) and adjusted per-share earnings (EPS) of a better-than-expected $1.38. 

A 1.04% dividend yield makes PayPal Holdings even more attractive to own for the long term. 

How Wall Street Recommends Playing PayPal

Investors should also note that Wall Street analysts haven’t thrown in the towel on PYPL shares. 

According to Barchart, while the consensus rating on PayPal sits at “Hold” only, price targets go as high as $70 currently, indicating potential upside of roughly 30% from here.