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PayPal Holdings shares fell significantly after Stripe and Advent International abandoned a $50 billion acquisition bid.

PayPal Holdings shares dropped between 11% and 15% on Friday following reports that Stripe and Advent International walked away from a potential acquisition of the payments company. The consortium had previously valued the company at over $50 billion, removing a major takeover catalyst that had supported the stock price for several months. While PayPal Holdings saw a sharp decline, the buy-now-pay-later sector showed mixed results. Affirm Holdings shares surged 13% on record profits and a new exclusive deal with Shopify in Australia. Klarna shares rose 5% as investors felt relief over the lack of immediate consolidation, while Sezzle shares saw a modest 2% gain. The Financial Select Sector SPDR ETF remained largely unchanged, indicating that these price movements were specific to individual companies rather than a broad sector rotation. Investors are advised to scale into PayPal Holdings as it seeks a new floor, while monitoring Affirm Holdings for early volume results from its Australian expansion.

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