PayPal Holdings Inc. (NASDAQ:PYPL) shares tumbled sharply, falling over 12% in overnight trading following reports that a consortium led by Stripe and Advent International has abandoned its $53 billion takeover pursuit.
However, despite the steep drop, some market watchers are applauding PayPal’s board for rejecting the “inadequate offer” and preserving “meaningful upside” for existing shareholders.
Defending ‘Meaningful Upside’
The buyout group had reportedly tabled a bid of $60.50 a share for the digital payments giant in mid-July. PayPal’s board ultimately rejected the proposal, as reported by Reuters, deeming it insufficient and noting potential regulatory and financing hurdles. Benzinga reached out to PayPal for comment on the matter but did not receive an immediate response.
Portfolio manager at Hedge Fund Tips and money manager at Great Hill Capital Thomas Hayes offered strong support for PayPal’s leadership.
Hayes publicly praised CEO Enrique Lores and the board for not accepting the “inadequate offer,” which he noted was less than nine times free cash flow.
“Kudos to the $PYPL board… for not allowing them to steal meaningful upside from current owners,” Hayes stated. He urged the company to stay the course as a standalone entity, advising leadership to “continue to execute the turnaround playbook, buy in shares and grow the ad business for additional margin expansion over time.”
The Dead Deal and Market Drop
Following news that Stripe and Advent had formally walked away, PayPal’s stock sank in overnight trading, falling below $54 per share and erasing gains from the initial takeover buzz.
Reacting to the deal’s collapse, market commentator Sam Badawi noted that the consortium’s exit suggests they simply do not believe the company is “worth more” than the $53 billion price tag.
Executing the Turnaround Playbook
PayPal currently faces a critical juncture. The fintech pioneer has seen its market value collapse from a pandemic-era peak of roughly $360 billion in 2021 to a fraction of that size this year, battered by fierce competition from mobile rivals like Apple Pay and Google Pay.
To combat slowing growth, Lores initiated a sweeping recovery effort after taking over in March. He recently reorganized the company into three distinct operational units—checkout, Venmo, and payments and crypto—aiming to simplify the provider and sharpen its focus on long-term growth.
How Has PayPal Performed in 2026?
At the last check, the PYPL stock was trading 12.69% lower in overnight trading. It was up just 5.29% year-to-date, declined by 11.74% over the last year, and rose 33.02% over the last six months. It closed 0.55% lower at $61.47 per share on Thursday.
Benzinga’s Edge Stock Rankings indicate that PYPL maintains a strong price trend in the short, long, and medium terms, with a poor growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Galih Yoga Wicaksono on Shutterstock.com
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