PayPal Falls After Stripe, Advent Drop $53B Takeover Bid

PayPal shares fell sharply in premarket trading after Stripe and Advent Capital abandoned their $53 billion offer to acquire the company. The stock traded near $53, roughly 15% below its high for the month.

The proposed $53 billion deal would have ranked among the largest transactions in the payments sector. Its withdrawal removed a potential exit option for PayPal and coincided with heavy selling pressure in early trading.

PayPal reported second-quarter revenue of $8.7 billion, up 5% year over year, and GAAP earnings per share of $1.25, down about 3%. Monthly active accounts rose about 1% to 228 million, and transactions per active account increased roughly 3%.

Analyst consensus calls for revenue of about $34 billion this year, a rise of roughly 4.6%, and about $36.2 billion next year, an increase near 4.4%. Analysts project EPS near $5.39 for the current year and about $5.79 for the next year.

CEO Enrique Lores has outlined cost and efficiency actions that include reducing organizational layers and targeting approximately $1.5 billion in savings through 2027. The company also plans to focus on marketing efficiency and broader deployment of artificial intelligence across its platforms.

Venmo was highlighted in the quarter: monthly active accounts using the Venmo debit card rose more than 50%, and Pay With Venmo activity increased by over 30%. Some investors have proposed separating Venmo from PayPal; the company has not announced a decision on any split.

Technical patterns on the daily chart show a rising wedge formation, and momentum indicators such as the Relative Strength Index and MACD display bearish divergence. Market participants pointed to a key support level near $40.45, the company’s low in June.

PayPal’s market value peaked above $300 billion during the pandemic and has since fallen as growth slowed and competition increased. Investors will watch upcoming guidance, progress on the announced cost savings, and any strategic moves involving Venmo or other assets.