A panel on Yahoo Finance's Opening Bid examined whether a potential takeover of PayPal by Stripe makes sense, following reports of a bid at a 28% premium. AllSource Investment Management's Patrick Kennedy noted the deal could work if Stripe secures the right price, given PayPal's roughly 12% free cash flow yield, but questioned whether PayPal's board would accept the offer. Yahoo Finance's Brooke DiPalma highlighted intensifying competition from Apple Cash among younger users, while also citing Michael Burry's view that the offer will need to rise. HSBC's Duncan Toms, without commenting on specific names, defined a value trap as a cheap asset that fails to recover, and suggested combining value with momentum to avoid such traps.
PayPal Holdings IncPotential takeover bid at 28% premium; positive for shareholders if deal goes through.
Apple Inc.
HSBC Holdings PLCReported as potential acquirer of PayPal; impact depends on deal terms and strategic fit.