Why Is PayPal Stock Trending Monday?

PayPal Holdings Inc. (NASDAQ:PYPL) stock is trending as renewed takeover speculation draws attention to an unconfirmed report from September that an unnamed West Coast tech company may be evaluating an all-stock deal for the company. PayPal stock is under selling pressure. Why are PYPL shares declining? A September Betaville Alert Pointed to an Unnamed West Coast Tech Company and an All-Stock Deal On Sept. 25, traders circulated a Betaville "uncooked" alert, or early and unverified deal chatter, that an unnamed West Coast U.S. technology company may be weighing an all-stock takeover of PayPal, according to Seeking Alpha. No buyer was named, PayPal did not confirm an approach, and the board is said to prefer cash. Shares rose that day. Retail Traders Guess Meta but Are Split on Whether a Bid Is Real According to Stocktwits, renewed takeover speculation is driving attention to the stock, with many traders guessing Meta Platforms Inc. (NASDAQ:META) as the possible buyer. No offer or buyer has been confirmed. The community is split between expecting a premium bid and viewing the rumor as a short-lived pump, while some focus on PayPal’s standalone turnaround and upcoming earnings. The Rumor Follows Stripe and Advent’s Abandoned $53 Billion Bid In July, Stripe and Advent International offered about $60.50 a share, or roughly $53 billion, a premium of about 28% to PayPal’s mid-July price. Talks continued into August, then collapsed in late August after the board viewed the price as too low and the two sides clashed over structure, including a reported $2 billion breakup fee. Shares fell about 13% in a day when the bid died. CEO Enrique Lores, who took over in March, has said PayPal will weigh outside offers against its standalone plan, which includes cost cuts and a large share-repurchase program. Bernstein analysts estimated PayPal’s board would want an offer meaningfully above $70 a share, according to Yahoo Finance. PayPal Reports Third-Quarter Results Oct. 27 PayPal is set to report earnings on Oct. 27 before the market opens. Analysts estimate earnings per share of $1.31 and revenue of $8.71 billion. PayPal guided to a low-single-digit decline in third-quarter earnings per share, about $1.30 to $1.33 on a normalized basis, and has raised its full-year non-GAAP earnings per share outlook to about $5.38. Read Also: Stock Market Today: Dow Futures Drop, S&P 500, Nasdaq 100 Rise as Scott Bessent Links September Inflation to 'Energy Shock'— RCAT, ESLT, STLD in Focus (UPDATED) PayPal Shares Decline PYPL Price Action: At the time of publication, PayPal shares are trading 1.94% lower at $55.60, according to data from Benzinga Pro. Image via Shutterstock