PayPal shares fell sharply in premarket trading on Aug. 28 after Reuters reported that Stripe and Advent International had abandoned their pursuit of the payments company. The withdrawal erased a takeover premium tied to an earlier proposal that valued PayPal at approximately $53 billion.
The consortium had offered $60.50 per share, according to an Axios report in July. PYPL fell to $53, a decline of nearly 15% from its high this month. Technical indicators suggested the stock could remain under pressure and potentially test support near $40.45, its lowest level in June.
PayPal’s latest quarterly update showed second-quarter revenue of $8.7 billion and total payment volume of $486.4 billion. The company also raised its full-year non-GAAP earnings guidance. Earnings per share fell 3% to $1.25, monthly active users rose 1% to 228 million, and transactions per active account grew 3%. Analysts expect annual revenue to grow 4.6% to $34 billion this year and 4.38% to $36.23 billion next year, with EPS forecast at $5.39 and $5.79.
PayPal’s new CEO, Enrique Lores, is pursuing a turnaround strategy that includes cutting organizational layers and targeting $1.5 billion in savings through 2027, improving marketing efficiency, and integrating AI into the platforms. Venmo remains a bright spot, with Venmo Debit Card monthly active accounts rising over 50% and Pay With Venmo growing over 30%. No cryptocurrency-specific assets were directly named in the reports, and the development is primarily a traditional equities and payments sector event.
