🕒 Created

PayPal Holdings, Inc. shares fell 12.7% after the company abandoned plans to be acquired by a Stripe-led group.

PayPal Holdings, Inc. shares dropped 12.7% on Friday following reports that the company abandoned plans to be acquired by a Stripe-led group. This decline confirmed the caution of CNBC host Jim Cramer, who had previously advised investors to favor JPMorgan or Wells Fargo over PayPal Holdings, Inc. on August 17th. While PayPal Holdings, Inc. reported a mixed second-quarter performance, including a 5% revenue growth and a 10% increase in payment volume, its earnings per share fell by 1%. The company faces competition from mobile wallets and aims to achieve $400 million in cost savings. In contrast, a Stripe-led group's rival, Klarna Group plc, showed strong growth in revenue and operating income, though it faces challenges in the Europe market. Jim Cramer noted that the fintech space is crowded and questioned the valuation of Venmo. He highlighted the other fintech companies competing for market share in the same space, including Klarna Group plc and Affirm's CEO Max Levchin.

Sources