PayPal stock has crashed nearly 18% in pre-market trading after payment giants Stripe and Advent have reportedly walked away from acquiring the company, as per Bloomberg.
This was one of the largest buyout attempts in fintech history. Advent and Stripe previously offered PayPal over $50 billion. It is no longer pursuing a transaction.
Pre-market price now trades at $50.61, roughly 18% below the $62.73 swing high set only days ago.
BREAKING: PayPal crashes -12.5% in after-hours trading after Stripe and Advent abandon their pursuit of the company in a potential $50+ billion deal, per Bloomberg.
PayPal surged over +40% this quarter on takeover speculation and stronger Q2 earnings.
— Bull Theory (@BullTheoryio) August 28, 2026
Why the Bid Collapse Guts PayPals Rally
The scale of the drop makes sense once you look at what was holding the stock up.
PayPal shares had jumped more than 40% this quarter, lifting the companys market value to about $52.6 billion. That rally rested on two pillars: second-quarter earnings that topped analyst estimates, and relentless takeover speculation.
Bloomberg first revealed in February that Stripe was weighing an acquisition of parts or all of PayPal, after a stock slump had wiped out a large chunk of its value.
One of those pillars just disappeared, and the market is repricing PYPL without a buyer in the picture.
The negotiation history adds a sting. The Wall Street Journal reported in August that PayPal had found the initial Advent-Stripe bid insufficient, and that the two sides were negotiating a potentially higher price. Holding out for more ended with no deal at all.
PYPL 12-hour chart. Source: TradingView
With PayPals market capitalization of roughly $52.6 billion sitting close to the withdrawn offer, there is little left to anchor the valuation here.
Nothing about the underlying business has improved, either. PayPal was an early mover in digital payments after its founding in the late 1990s, but it has struggled to modernize its payment technologies as rivals such as Apple and Alphabet seized market share.
The company also ousted former CEO Alex Chriss earlier in 2026 and replaced him with Enrique Lores in March. Lores has said he will set specific financial goals, change how the company reports earnings, and assign a revenue target to each business line. Those are fixes measured in quarters, not days.