NewsDialy
A takeover bid, meaning an offer from an outside company to purchase another outright, had been quietly lifting PayPal's stock for months. Reports now say the suitors behind that interest have walked away.
The shares fell when the news spread. When buyout rumors hang around a public company, investors typically price some probability of a deal into the stock.
They are paying, in part, for the chance that an acquirer shows up and offers a premium: the extra amount above the current share price that a buyer must pay to win shareholder approval for a sale.
Remove the buyout story, and that probability collapses. PayPal had been living on that support. Reports of outside interest gave the stock a baseline it may not have earned from the business results alone.
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