PayPal Holdings Inc. saw its shares drop by 1.28% to $61.47 on August 28, 2026, after Bloomberg News reported that a consortium involving Advent International and Stripe had ended its potential $63.5 billion acquisition bid. This news removed a significant valuation support level for the fintech pioneer, which has faced challenges in modernizing its payment technologies and competing with rivals like Apple and Alphabet. The offer, which valued PayPal at over $53 billion ($60.50 per share), was considered insufficient by PayPal's board and represented a fraction of its pandemic-era peak valuation of $360 billion in 2021.
PayPal's new CEO, Enrique Lores, who took over in March 2026, is leading a turnaround effort to simplify the company and refocus on growth, including setting specific financial goals and revenue targets for each business line. Despite a stock slump earlier in the year that made it a target for acquisition, PayPal's shares had jumped over 40% in the quarter prior to this news, partly due to the takeover interest and better-than-expected Q2 earnings. The absence of a buyout bid now places greater emphasis on PayPal's standalone prospects and future earnings reports.
Meanwhile, Gap Inc. experienced a rally in postmarket trading after reporting its second-quarter fiscal 2026 results. Although net sales of $3.7 billion were down 2% year-over-year and slightly below expectations, the company exceeded profit expectations due to strong gross margin of 52.8%. Adjusted operating income was $259 million, and adjusted diluted EPS was $0.52. The Gap brand itself showed strong performance with net sales up 9% and comparable sales up 10%, driven by categories like denim and kids and baby. Banana Republic also saw positive comparable sales growth of 3%, while Old Navy's comparable sales were down 4% and Athleta's were down 12%.
Gap Inc. updated its full-year net sales outlook to an increase of 1% to 1.5%, with Old Navy's comparable sales now expected to be flat to down 1%. Conversely, the Gap brand's comparable sales are projected to grow in the high-single to low double-digit range. The company's full-year diluted earnings per share are now expected to be approximately $3.77 to $3.87. This positive earnings report and outlook, coupled with the announcement of a new CEO for Old Navy, contributed to the stock's positive performance.
