Capital One's Trading Volume Drops 32% Ranking 133rd Amid $35 Billion Discover Acquisition

On April 8, 2025, Capital One Financial Corp (COF) experienced a trading volume of 8.91 billion, marking a 32% decrease from the previous day. The stock closed at a 1.50% decline, ranking 133rd in terms of trading volume for the day.

Capital One's acquisition of Discover Financial Services has received significant regulatory approvals, with the U.S. Department of Justice (DOJ) announcing on April 3, 2025, that it would not block the $35 billion deal. This approval is a crucial step towards finalizing the merger, which has been endorsed by shareholders and is expected to be completed early this year.

The merger, if approved by the Federal Reserve and the Office of the Comptroller of the Currency (OCC), would create the largest credit card issuer in the U.S. by outstanding balances, surpassing JP Morgan Chase. The combined entity would serve approximately 400 million cardholders, integrating Capital One's extensive customer base with Discover's proprietary card network and issuing capabilities.

This consolidation could disrupt the longstanding dominance of Visa and Mastercard, as Discover operates its own payment network, unlike Capital One, which traditionally relies on the infrastructure of the two major incumbents. Analysts suggest that the merger could catalyze a broader realignment in the sector, particularly if Capital One migrates existing cardholders to Discover’s network over time.

There are potential implications for consumer segmentation as well. Discover’s product range includes cash-back debit cards, often appealing to lower-income demographics. Capital One could leverage these offerings to expand its footprint in underserved segments, particularly among consumers with non-prime credit scores. However, concerns have been raised about the enlarged firm’s dominance in the non-prime credit card market, warning of the potential for increased interchange fees and higher borrowing costs.

The merger has drawn criticism from progressive lawmakers, including Senator Elizabeth Warren, who argue the deal risks reducing competition and harming consumers through increased fees and less favorable credit terms. Despite these concerns, the DOJ’s decision to approve the merger signals a potential recalibration of antitrust policy, particularly in financial services.