PayPal edges higher after takeover bid withdrawal

PayPal Holdings Inc. (NASDAQ: PYPL) shares were edging higher on Wednesday afternoon, recovering after a multi-day selloff tied to the collapse of a potential $53 billion buyout offer. The stock had fallen over 15% over the past week after a consortium led by payment processor Stripe and private equity firm Advent International withdrew a proposed $60.50-per-share takeover bid. With takeover talks now off, investor focus is shifting back to the standalone strategy Chief Executive Enrique Lores outlined on the July 28 second-quarter earnings call, weeks before the acquisition proposal was withdrawn.

On that call, management raised full-year profit forecasts, while Lores said there was still “significant work ahead” to regain market share. Chief Financial Officer Jamie Miller also outlined execution targets, including cost cuts aimed at producing nearly $400 million in run-rate savings by the end of 2026. PayPal shares were up 3.59% at $54.29 at the time of publication on Wednesday, according to Pro data. The move came after a selloff that left PayPal’s forward price-to-earnings multiple at roughly 10x, below broader fintech peers and S&P 500 averages.

Buying interest was also potentially supported by investors moving ahead of the company’s Sept. 4 ex-dividend date to capture its 14 cent quarterly payout.