PayPal (PYPL) Shares Drop 12.7% as $53 Billion Bid Withdrawn

PayPal (PYPL) shares fell 12.7%, closing at $53.66 after the withdrawal of a $60.50 per share bid from a consortium including Stripe and Advent International, marking a decrease of $7.81. The market reacted to the loss of takeover optimism, with trading volume reaching about 36 million shares, over twice the average. Analysts had deemed the initial offer inadequate, suggesting PayPal’s board would not accept less than $70 per share. This withdrawal has intensified scrutiny on CEO Enrique Lores' ability to enhance shareholder value independently, making it crucial for PayPal to address its valuation problem.