PYPL Stock Rises After Considering Splitting Off Venmo As Standalone Segment: Report

• This will make it easier for PayPal to sell the business to another firm, CNBC reported, citing people familiar with the matter.
• Besides Venmo, PayPal will have two other segments: a PayPal-branded business for merchants and consumers and a payment services unit.
• PYPL’s recent share drop has reportedly drawn buyout interest from its rival Stripe. 
   

Shares of PayPal (PYPL) jumped 3% on Wednesday following a media report that the firm is considering separating Venmo as a standalone business.

According to a report from CNBC, PayPal CEO Enrique Lores told managers that he is reorganizing the firm’s reporting lines for this purpose. Lores joined PayPal as CEO in March, replacing Alex Chriss.

The mobile payments app will soon reportedly be its own standalone segment within PayPal. This will make it easier for PayPal to sell the business to another firm, CNBC reported, citing people familiar with the matter who also added that the company is looking to recruit a digital banking executive to run Venmo.

Other Segments At PayPal, Bidder Interest

Besides Venmo, PayPal will have two other segments, one a PayPal-branded business for merchants and consumers, and a payment services unit, the report said.

The company’s recent share price drop has reportedly drawn bidder interest from its rival Stripe as well as others who are eyeing parts or the whole of the company.

Layoffs Ahead?

As per CNBC, PayPal might also be on the brink of a broad round of layoffs as former CEO Chriss tasked managers with coming up with 15% headcount reductions earlier this year. However, once Chriss left, the plans were left in limbo, the report noted.

Paypal is slated to report its first-quarter earnings next week. Analysts on average expect the firm to report revenue of $8.05 billion, but earnings per share of $1.27, below the $1.33 reported in the corresponding quarter of 2025.

How Did PYPL Retail Traders React?

On Stocktwits, retail sentiment around PYPL stock rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘normal’ levels.

A Stocktwits user opined that PayPal is “finally cleaning up the mess.”

Another user said that splitting Venmo “makes sense” and termed the decision a double win for shareholders.

PYPL stock has fallen 23% over the past 12 months. 

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