PayPal (PYPL) Stock Soars Over 6% on Confirmation It Won't Acquire Pinterest (PINS) 'At This Time'; PINS Stock Down 11%

October 25, 2021 6:05 AM EDT
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Price: $189.64 +0.49%

Rating Summary:
    47 Buy, 7 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 2 | New: 5
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Shares of PayPal (NASDAQ: PYPL) are up 6.5% in pre-open Monday after the payments giant announced Sunday it is not looking to acquire social media platform Pinterest (NYSE: PINS), as previously rumored.

“In response to market rumors regarding a potential acquisition of Pinterest by PayPal, PayPal stated that it is not pursuing an acquisition of Pinterest at this time,” the company said in a brief statement posted on its website.

Bloomberg and Reuters reported last week that PYPL made an offer to acquire PINS at $70.00 per share, valuing the company at about $45 billion.

Pinterest stock price soared on the announcement to end the week over 10% higher, although shares are now down over 11% in pre-open.

Weighing in on the potential deal, Wedbush analyst Moshe Katri said he sees "significant positive" for PayPal's ongoing monetization initiatives on both sides of its merchant and consumer platforms.

On the other hand, Truist analyst Andrew Jeffrey was more pessimistic.

“A move to make another online deal, even in social media, just doesn’t make a lot of sense long term..Unless the company can monetize off of e-com (instore) with Venmo, we think it’s growth is ultimately going to revert toward e-com growth and that kind of deceleration is not currently priced into the stock,” Jeffrey said.

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