PayPal faces a cold market reception for its strategy to transform Venmo into a comprehensive financial platform. CEO Enrique Lores introduced the plan to revive growth after acquisition talks with Stripe and Advent International failed in July. The proposed deal valued the company at more than $53 billion.
The strategy includes overhauling core payments and adding "buy now, pay later" features to reclaim market share from Apple Pay and Google Wallet. Investors doubt the execution, causing a share price plunge and fading takeover hopes.
Analysts cite immediate pressure on transaction growth and competition despite potential long-term growth levers.