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Pinterest stock jumps after PayPal said to explore acquisition - Bloomberg (updated)

Oct. 20, 2021 11:40 AM ETPinterest, Inc. (PINS), PYPLAFT, SQ, AFTPYBy: Liz Kiesche, SA News Editor117 Comments

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seewhatmitchsee/iStock Editorial via Getty Images

  • Pinterest (NYSE:PINS) stock surges 9.4% after a report that PayPal (PYPL -3.2%) is considering acquiring the social media company.
  • The San Jose, California-based payments firm recently contacted Pinterest (PINS) about a potential deal, Bloomberg reports citing

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Comments (117)

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TommyIrish profile picture
Bulls might want to consider the Chaiman's insider sales over the last year.

SPOILER ALERT: A bunch in the 60s -70sm but SURE, only a bill or something in insider sales in 12 months.

What graft, oops meant to say growth, investment is all about!
great time to make an offer on PINS, you can offer more than the share price and still get a great deal..
What exactly is Pinterest? Do they make anything useful? No. But then neither does most of the tech universe, like Fakebook. And Twitter. Ad infinitum.
threeleaves profile picture
@Sid Debgupta Blah blah blah. Utility is subjective. I personally don't use any of the platforms you mentioned, but to peg them as useless just because I don't use them would be completely NARCISSISTIC.
bullish bengal profile picture
@Sid Debgupta what a ridiculous comment.
Affinity4Investing profile picture
@Sid Debgupta One of the best comments I've ever seen here on SA in years!
I do not want to sell my PINS shares at $70
great i own PYPL stock and dont want to buy them for 70 usd
Articles like this make me want to cancel Seeking Alpha. This idea that a great company buying another great company is negative is beyond me. I bought PYPL on the dip today and am up 2% on it, probably make 3%. Thanks for freakin everyone out. I make money regardless of how stupid people are. And thank goodness for that. I understand it is dilutive for PayPal but not crazy.
Jstic profile picture
@I've Seen Colors From The Other Side My thoughts exactly. Sold $250 puts for $4 (Oct. 22). I'll be happy to pick up some shares for $246, or I'll bag some easy money on the premium.

I see this as a growth opportunity for Paypal.

It's a typical market overreaction.
Purewater profile picture
This is like when ICE tried to buy EBAY
Catastrohpik profile picture
I now see why PINS cofounder left
Given a purchase price of $45B and PYPL stock down 6% ($18B) as I write, this just ain’t going to happen, especially via a mostly stock deal.

And you based your conclusion on what? Your guts? What you wrote has no bearing on whether they buy PINS or not. If PayPal wants PINS; they will overpay in this market.

Whenever the acquiring company buys another; their stock always take a hit. So PayPal going down on a rumor has no bearing on the outcome.
If this is largely a stock deal, I base it on PINS shareholders getting less than they bargained for - as it relates to swapping for a stock that’s worth 6% less than it was trading for yesterday. I realize that could change between now and the time that the deal closes, but nonetheless wouldn’t that give you pause today if you were a PINS shareholder?
Didn't PINS reject MSFT at $86 in Feb? I can't see them agreeing to $70 today. I'll vote against $70. Way too low when I can likely get much more by being patient.
@JackNife I agree I am voting no at 70. I would consider voting yes at 95-$105 level.
nsei profile picture
20 Oct. 2021
@nsei Insiders control 99% of the voting power...
Winnertakesall profile picture
What on earth do these two companies have to do with one another...
@Winnertakesall not much - and that is the point. Paypal wants Pinterest in order to move further up the channel, ie catch a buying customer much earlier in the shopping process. They cannot currently do that, whereas Pinterest -whose business it is to inspire and induce potential buyers into a shopping decision- very much can. The tie-up would form a full-chain e-commerce and FinTech powerhouse.

That said, Pins is being undervalued at USD 70. A big no to this deal on the rumoured terms.
PYPL should not pay much higher than $70. PINS has slowing growth so it makes no sense to overpay, despite all the PINS holders predictably calling for ridiculous prices. I get that some of your are bag-holding after the recent drop it's not PYPL's job to bail you out lol.
bullish bengal profile picture
@Snorlax 125% yoy revenue growth is a lot of growth… or are you talking about US MAU?
@bullish bengal past growth, already priced in
Makes no sense for PayPal.
@Qwerty2102 Makes plenty of sense, they have a small company called honey which provides coupons for online purchases, integration with that and Vemno would make PYPL a juggernaut for product discovery and will ensure that their customers get the best price. Love the move and as a pypl shareholder I hope it goes through.
msawi11 profile picture
@King4Coins also new revenue stream from advertising
@King4Coins Couldn't you have done that with Ebay instead of splitting up?
JJ Brink, CA, CFA profile picture
Buy the dip
Split on this. Own PINS (avg. basis around $40 a share though I started my position in the $20s) and on the one hand would like to see a little bit more on the offer. On the other hand, also own PYPL and this would be an absolutely gangster move for their ecosystem, so would be fine with them getting a deal on my PINS shares.
Windermer profile picture
@Too Short gengster gengster?
EriCoin profile picture
Good chance to re-enter PayPal after the drop. Thank you.
They BETTER not sell for $70, my average price is $69
MikeFromNZ profile picture
Can someone snap Evan and get SNAP to make a real bid? Much better fit vs PYPL!
Robert.from.Ct profile picture
why not buy SNAP?
Raysab profile picture
@Robert.from.Ct Why not Wendy's? Pins is mainly a storefront and fits Paypal business
@Raysab Wendy's makes no sense. Not enough beef in that deal.
Hopefully this makes a nice steady climb back up after many of the weak hands got out.
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