NewsHK
The bid premium that had held PayPal's stock above its standalone fundamentals for months appears to have dissolved.
Reports that a takeover offer has fallen through sent the shares sharply lower, removing support the market had been pricing in for some time.
When acquisition speculation props up a stock, the premium reflects a prospective buyer's appetite rather than the company's own trajectory. The two can diverge considerably.
When a deal falls through, that spread tends to close fast, and that appears to be what is happening to PayPal now.
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