PayPal shares slide as takeover pursuit ends

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PayPal shares slide after takeover ends

Highlights

PayPal shares fell 13% in premarket trading to $53.20 after Advent and Stripe abandoned a $60.50-per-share takeover bid.
PayPal's board had previously rejected the $60.50-per-share offer, which was far below its 2021 pandemic-era market peak valuation of $360 billion.
Facing competition from Apple and Google, PayPal raised its 2026 profit forecast and announced further cost cuts under CEO Enrique Lores in response to growth challenges.

Takeover talks and market reaction

As reported by Reuters, citing Bloomberg News, a consortium of buyout firm Advent and payment processor Stripe abandons its pursuit of PayPal, sending the company's shares down 13% in premarket trading on Friday.

Reuters reported in July, citing sources, that Stripe and Advent International made a $60.50-per-share bid for the payments company. PayPal's board had previously viewed that initial offer as inadequate, according to earlier reporting, and the proposal stood far below the roughly $360 billion valuation the company commanded at the peak of the pandemic-era boom in 2021.

PayPal shares were last indicated at $53.20 before the bell, after closing at $61.47 in the previous session. Analysts say deal-related developments and the broader news flow are likely to remain a near-term driver for the stock.

Turnaround pressure in digital payments

PayPal continues to struggle to regain momentum as the pandemic-driven surge in online shopping and digital payments fades and consumers return to physical stores. The company also faces intensifying competition from Apple and Google, which expand their payment offerings through smartphone ecosystems and put pressure on PayPal's core market share.

In response, PayPal has made broad changes over time, including management reshuffles, workforce reductions and a stronger focus on higher-margin products. Last month, the company raised its 2026 profit forecast and outlined additional cost-saving measures under newly appointed CEO Enrique Lores.

On the company's most recent earnings call, Lores does not comment on the takeover speculation but says PayPal would carefully consider any opportunity or strategic option it believes could create superior value for shareholders.

Our earlier article on Apple’s Sept. 9 event and foldable iPhone expectations outlined how investors were positioning for a potential new growth catalyst in smartphones as Apple prepared its first launch under incoming CEO John Ternus. We also noted IDC’s forecasts for foldable iPhone shipments and the broader backdrop of weakening smartphone demand and rising memory costs that could pressure pricing and margins across the sector.

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