PayPal shares tumble on report Advent-Stripe consortium drops buyout bid

PayPal has struggled to regain its footing as the pandemic-fueled surge in online shopping and digital payments faded and customers returned to brick-and-mortar stores.

Intensifying competition from tech giants Apple and Google, which have expanded their digital payment services by integrating them into smartphone ecosystems, eroded the company's core market share.

Over the years, PayPal has responded to these pressures with sweeping changes, including management reshuffles, workforce reductions and a renewed focus on higher-margin products.

Last month, the company doubled down on its turnaround plan, raising its 2026 profit forecast and outlining cost-saving steps under newly appointed CEO Enrique Lores.

"Given that backdrop, PayPal has a credible argument that $53 billion does not fully reflect the value of its platform, brand and user base," said Troy Hooper, Co-Head of ECM US at Mergermarket.

"The company does not necessarily need to demonstrate a successful turnaround before demanding a higher price. That said, sustaining that position will ultimately require management to prove the turnaround can translate into stronger growth and earnings."