TLDR
- PayPal shares fell around 13-15% after Stripe and Advent International abandoned a $50B+ acquisition bid
- Elastic surged over 18-21% after beating earnings and raising its full-year outlook
- Affirm jumped 9% on strong quarterly results and an upbeat fiscal 2027 forecast
- Marvell fell around 7-8% despite beating earnings, as investors wanted a bigger beat
- Rubrik dropped 8% even after reporting strong revenue growth and raising guidance
Friday’s stock market opened on a mixed note, with investors keeping a close eye on Federal Reserve Chair Kevin Warsh’s keynote at the Jackson Hole symposium. Uncertainty around U.S.-Iran negotiations and pressure in energy markets also weighed on sentiment heading into the open.
PayPal was the session’s biggest loser. Shares dropped around 13-15% after Bloomberg reported that payments company Stripe and private equity firm Advent International walked away from a deal to acquire the fintech giant. The consortium had offered more than $50 billion for PayPal, which would have been one of the largest leveraged buyouts on record.
Block had previously been part of the group but exited before Stripe and Advent submitted their offer. PayPal did not immediately respond to a request for comment. The potential deal had been priced at a steep premium to PayPal’s current valuation, though it was still well below the roughly $360 billion the company was worth at its pandemic peak in 2021.
Elastic and Affirm Lead the Gainers
Elastic was the standout winner of the day, with shares rising between 18% and 21%. The search and observability software company reported first-quarter revenue growth of 15.2% year over year. It also raised its fiscal 2027 outlook, guiding for full-year revenue of up to $2.01 billion and adjusted earnings per share above analyst estimates.
Affirm rose 9% after reporting a strong fourth quarter. Gross merchandise volume hit $14.1 billion, above the consensus estimate of $13.4 billion. Active consumers grew 20% year over year to 27.8 million. The buy now, pay later company guided for fiscal 2027 GMV above $64 billion.
Marvell and Rubrik Fall Despite Beats
Marvell posted second-quarter revenue of $2.739 billion, up 37% year over year and a company record. Data center revenue jumped 46% to $2.17 billion. Despite beating estimates, shares fell around 7-8%, as investors appeared to be expecting more after a strong run. Marvell’s stock had risen 184% in the year through Thursday’s close.
Rubrik dropped 8% even though the cybersecurity company reported revenue growth of 38% year over year and raised its full-year guidance. The company ended the quarter with 3,084 customers generating at least $100,000 in annual recurring subscription revenue.
Gap surged 14% after reporting a second-quarter earnings beat and naming a new CEO for its Old Navy brand. Autodesk fell 4% after its outlook disappointed investors, despite beating on second-quarter earnings. Workday slipped slightly after posting better-than-expected results and raising guidance.
Markets remain focused on signals from Jackson Hole as investors look for direction on interest rates heading into the fall.
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