SAN JOSE, California, August 28, 2026, 07:02 (EDT) — PayPal Holdings Inc shares slumped 15.4% after the company called off its pursuit of a $53 billion takeover, prompting investor concerns over its growth strategy.
- Shares of PayPal dropped 15.4% to $52.00 ahead of the opening bell on Friday.
- A $53 billion takeover bid, offering $60.50 per share, has reportedly been dropped.
- The decline wiped out approximately $8.1 billion in implied equity value.
PayPal stock dropped 15.4% on Friday following the collapse of a reported acquisition bid. The failed deal erased the premium added to shares in recent weeks.
PayPal Holdings, Inc. (NASDAQ: PYPL) was quoted at $52.00 as of 06:52 EDT. The stock ended Thursday at $61.47 premarket quote.
The $9.47 drop wiped out roughly $8.1 billion in implied market capitalization. This calculation is based on 855.46 million shares outstanding.
Advent International and Stripe have dropped their bid, Bloomberg said. The group’s offer stood at $60.50 a share, equal to roughly $53 billion Reuters.
| Valuation marker | Amount | Investor reading |
|---|---|---|
| Reported offer | $60.50 per share | Consortium exited |
| Thursday close | $61.47 | Factored in buyout prospects |
| Friday premarket | $52.00 | 15.4% decline |
| Analyst target | $60.57 average | Hold rating consensus |
The bid was close to PayPal’s market value prior to Friday’s decline. The board found the first offer insufficient, Reuters said.
Shares had risen almost 30% after news of the possible offer surfaced. Friday’s drop shifted focus back to organic performance.
PayPal reported trailing revenue of $34.13 billion. Net income totaled $4.90 billion, with the forward price-earnings ratio close to 11.
The company has recently increased its profit outlook for 2026. CEO Enrique Lores is focusing on cost reduction efforts and boosting sales of higher-margin items company results.
Wall Street stays wary. The consensus from 43 analysts is Hold, with an average price target of $60.57 analyst forecast.
Risks: Competition among digital-wallet providers continues to be fierce. Earnings are affected by factors such as consumer spending, branded-checkout expansion and cost management. There is also a possibility that no additional bidders will come forward.
The valuation argument now hinges on operations. PayPal needs to leverage its scale to achieve higher growth, steering clear of takeover rumours.
