PayPal Stock Drops After Failed Buyout Attempt
PayPal (PYPL) shares fell more than 8% year-to-date following the collapse of a $53 billion buyout attempt led by Stripe. Despite this, options traders remain optimistic about PayPal's future performance in late 2026 based on Barchart Options data. The put-to-call ratio for PYPL options expiring mid-December is at 0.52, signaling strong bullish sentiment among investors. The upper price target from these contracts suggests a potential rally to $61.35 within four months—a nearly 14% increase. Technical indicators also support this view: PayPal remains above its 100-day moving average and has an RSI in the mid-30s, suggesting it is near oversold territory. Analysts note that rejecting a buyout at $53 billion signals confidence from PayPal's board regarding undervaluation. The company reported strong Q2 results with total payment volume up 10% year-over-year and better-than-expected adjusted EPS of $1.38, along with an attractive dividend yield.
Tickers: $PYPL