PayPal edges higher after takeover bid withdrawal
PayPal shares rose 3.59% to $54.29 Wednesday after a $60.50-per-share takeover bid was withdrawn, refocusing attention on the company’s standalone turnaround plan.
Shares of PayPal Holdings Inc. (NASDAQ: PYPL ) are edging higher on Wednesday afternoon, rebounding following multi-day selloff triggered by the collapse of a potential $53 billion buyout offer.
PayPal Holdings stock is charging ahead with explosive momentum.
Why is PYPL stock surging? Stripe Buyout Withdrawal Refocuses Turnaround Strategy PayPal stock fell 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 defunct, market attention pivots back to the standalone strategy Chief Executive Enrique Lores outlined during July’s second-quarter earnings call, weeks before the acquisition proposal was withdrawn.
On that July 28 call, where management raised full-year profit forecasts, Lores cautioned that “significant work ahead” remains to reclaim market share.
On the same call, Chief Financial Officer Jamie Miller detailed execution targets, including cost-cutting measures designed to yield nearly $400 million in run-rate savings by the end of 2026.
Valuation Discount and Ex-Dividend Date Wednesday’s bounce could reflect value-hunting following a selloff that compressed PayPal’s forward price-to-earnings multiple to roughly 10x, well below broader fintech peers and S&P 500 averages.
In addition to valuation support, buying interest is potentially being bolstered by investors stepping in ahead of the company’s Sept.
4 ex-dividend date to capture its 14 cent quarterly payout.
PYPL Shares Rise Wednesday PYPL Price Action: PayPal Holdings shares were up 3.59% at $54.29 at the time of publication on Wednesday, according to Pro data.
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