PayPal Shares Drop Over 12% as Reported $50 Billion Takeover Bid Collapses
On August 28, PayPal Holdings (NASDAQ:PYPL) closed at $53.66, down 12.71%, following reports that Advent International and Stripe had abandoned their reported $50 billion takeover bid for the digital payments company. The stock's sharp decline came amid a broader market downturn; the S&P 500 fell by 0.27% to 7,710 while the Nasdaq Composite dropped 0.52% to 26,402. The trading volume for PayPal surged to 35.9 million shares, significantly higher than its three-month average of 16.0 million shares. Analysts noted that investors were closely watching how management would execute a potential turnaround strategy in the absence of an acquisition offer. Despite the drop, PayPal still trades at only 7.5 times free cash flow. The Motley Fool analyst team highlighted continued value in PayPal's strong brand and questioned whether its current market cap fully reflects this strength. However, they did not recommend buying PayPal stock as part of their top 10 picks for investors.
Tickers: $PYPL
Topics: Advent International PayPal stock price drop Stripe takeover attempt failure