PayPal Stock Drops After Failed Buyout Talks
PayPal Holdings (PYPL) saw its stock fall sharply after reports that a potential $53 billion buyout deal involving Stripe, Advent, and Block had collapsed. The proposed offer valued PayPal at $60.50 per share — a 28% premium to the previous price but still low relative to earnings. However, PayPal reportedly sought more money than what was offered, leading bidders to withdraw their proposal. As of early afternoon on Friday, PYPL shares had dropped over 12%, trading below $54. Despite this setback, analysts note that even without a buyout, the stock remains relatively undervalued compared to its fundamentals and historical performance. The company still trades at less than 12 times earnings with strong free cash flow metrics. While no immediate suitor has emerged yet, some investors remain optimistic about PayPal's long-term value given its solid financials and potential for future growth.
Topics: Advent Block (Square) PayPal stock price drop Stripe