Capital One Stock Plummets 17.35% in Two Days Despite $35 Billion Discover Acquisition Approval Ranking 90th in Market Activity

On April 4, 2025, Capital One Financial Corp (COF) experienced a significant decline, with its trading volume dropping by 25.87% to 16.72 billion, ranking 90th in the day's market activity. The stock price fell by 8.21%, marking the second consecutive day of decline, with a total decrease of 17.35% over the past two days.

Capital One's proposed $35 billion acquisition of Discover Financial Services has cleared a major regulatory hurdle after receiving approval from the U.S. Department of Justice. This merger, if completed, would create the largest credit card issuer in the United States by balances and the sixth-largest bank by assets.

The approval from the Justice Department is a significant milestone for Capital One, as it paves the way for the company to proceed with the acquisition. The merger is expected to enhance Capital One's market position and expand its customer base, potentially leading to increased revenue and market share.

However, the regulatory approval comes at a time when Capital One is facing market volatility, with its stock price experiencing a notable decline. Investors may be cautious about the potential risks and uncertainties associated with the merger, which could impact the company's financial performance in the short term.

Despite the challenges, the approval from the Justice Department is a positive development for Capital One, as it demonstrates the company's ability to navigate regulatory hurdles and pursue strategic growth opportunities. The merger, if successful, could position Capital One as a leading player in the credit card industry and drive long-term value for shareholders.