PayPal Stock Drops as Buyout Plans Fall Through. Where Barchart Options Data Says PYPL Could Be Headed Next.

PayPal's shares plummeted on August 28 after a group led by Stripe abandoned their $53 billion attempt to acquire the financial technology firm. Options traders see value in the current dip and believe PayPal (PYPL) will surge from its current price level throughout 2026. Following the earnings report, Marvell Technology's stock HP, Inc. delivered strong results, with high yields on short-put plays.

BAC, CHWY, and SONY also showed unusual options activity in low-cost calls under $100. As of the latest data, PayPal stock has dropped more than 8% compared to the start of the year. Barchart indicates a strong bullish skew in put-to-call ratios for PYPL options expiring in mid-December, suggesting a potential 14% rally within four months.

Despite the recent decline, PayPal's technical momentum indicates a potential rebound, as it remains above its 100-day moving average and sits just above oversold territory. Analysts argue that rejecting the $53 billion buyout shows internal confidence in the market's undervaluation of the company's core business, allowing PayPal to reinvest its strong cash flow into buying back shares at discounted prices.

With stable second-quarter metrics, including a 10% year-over-year increase in payment volume and adjusted EPS of $1.38, PayPal's dividend yield of 1.04% makes it an attractive long-term investment. Analysts still hold a "Hold" rating on PayPal, with price targets reaching $70, indicating a potential 30% upside from current levels.