PYPL Stock Crash: Mizuho Highlights Three Key Risks For PayPal After Stripe, Advent Reportedly Abandon Takeover Bid
-
Mizuho highlighted challenges due to commoditization of PayPal's branded checkout, risks of market share loss in Germany, and potential competition from X-Money.
-
Loop Capital cut PYPL's target to $50 from $62 and retained a 'Hold' rating.
-
Keefe considers PayPal an attractive acquisition target because of its low valuation.
Mizuho stated on Friday that investors will now refocus on PayPal's (PYPL) fundamentals after Stripe and Advent International reportedly ended their takeover pursuit, highlighting three key risks facing the company.
On Friday, Bloomberg reported that the consortium is no longer considering a takeover bid that would have valued PayPal at more than $53 billion.
Following the report, PYPL shares tanked 13%. The stock briefly fell below its 50-day moving average (50-DMA) for the first time in over a month. It is also on track to clock its biggest single-day slump in six months.
Why Mizuho Cut PYPL's Price Target
Mizuho noted that PayPal's branded checkout business is becoming commoditized, making the checkout button less distinctive.
The firm also sees an increasing risk of PayPal losing market share in Germany, one of its important European markets. According to a study by the EHI Retail Institute, PayPal was the market leader in online payments in Germany with a 28.7% share in 2025.
Venmo could face disruption from Elon Musk's X Money service. Unveiled last month, X Money is an X-based fund transfer service. If successfully implemented, it could compete with Venmo for peer-to-peer transfers.
Mizuho lowered PYPL's price target to $51 from $60 and maintained a 'Neutral' rating, according to The Fly. It represents a marginal downside from current levels.
Meanwhile, Loop Capital also cut PYPL's target to $50 from $62 and retained a 'Hold' rating.
Keefe Bruyette Says PayPal Is Still An Attractive Target
However, Keefe Bruyette remained more optimistic, maintaining an 'Outperform' rating and a $70 target. Analyst Sanjay Sakhrani said PayPal may have rejected the offer because Stripe and Advent were seeking to buy the company cheaply.
While the end of takeover talks could pressure the stock, the firm still considers PayPal an attractive acquisition target because of its low valuation and "low-double-digit unlevered free cash flow yield."
PYPL Bulls Shrug Off Price Drop
Despite the slump, retail sentiment surrounding PYPL on Stocktwits turned 'bullish' from 'bearish' over the past 24 hours, amid an 839% increase in message volumes.
One user echoed Keefe's sentiment, calling PYPL an "incredible buying opportunity."
However, another user opined that the stock is expensive at $51.
The stock has shed around 9% of its value so far this year.
Also read: Mounjaro Vs Trulicity: Eli Lilly's New FDA Win Puts Its Blockbuster Weight-Loss Drug In Focus
For updates and corrections, email newsroom[at]stocktwits[dot]com
Arnab Paul has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy . This article was originally published on StockTwits .
Related:
