PayPal Shares Plunge 18% as Stripe, Advent Drop $50B Acquisition Plan

PayPal shares tumbled nearly 18% in pre-market trading after Stripe and Advent reportedly ended their pursuit of the company, Bloomberg reported.

The attempted buyout was among the largest in fintech history. Advent and Stripe had previously offered over $50 billion for PayPal. They are no longer pursuing a transaction.

In pre-market trading, the stock stood at $50.61, about 18% below the $62.73 swing high reached just days earlier.

What the Failed Bid Means for PayPal's Rally

The size of the drop is understandable when examining what had been supporting the stock.

The stock had surged over 40% this quarter, boosting PayPal's market capitalization to roughly $52.6 billion. The rally was built on two foundations: stronger-than-expected Q2 earnings and persistent takeover speculation.

Bloomberg first reported in February that Stripe was considering buying parts or all of PayPal, following a stock decline that had erased a significant portion of its value.

One of those supports has now vanished, and investors are revaluing PYPL without a potential acquirer.

The backstory of the talks makes the outcome more painful. In August, the Wall Street Journal reported that PayPal considered the initial Advent-Stripe offer too low, and the parties were discussing a higher price. Demanding more ultimately resulted in no agreement.

With PayPal's market cap of about $52.6 billion near the value of the withdrawn bid, there is little to support the current valuation.

The fundamentals have not changed. PayPal pioneered digital payments after its launch in the late 1990s, but has faced challenges updating its technology as competitors like Apple and Alphabet gained ground.

PayPal also dismissed former CEO Alex Chriss earlier in 2026 and installed Enrique Lores in March. Lores has stated he will establish concrete financial targets, alter earnings reporting, and assign revenue goals to each business segment. Such improvements take quarters, not days.