Thursday October 21, 2021
Stocks skyrocket
Paypal should plan to take over Pinterest
Paypal and Pinterest are winners of the corona pandemic. The payment service provider is benefiting from the shopping boom, the online pin board is a sought-after source of inspiration, for example for handicraft and home improvement projects. Now reports of a takeover are fueling investor fantasies.
Shares in the photo platform Pinterest have made a leap up after reports of interest in buying the payment service PayPal. At the close of trading in the US on Wednesday, there was an increase of almost 13 percent, in after-hours trading, the price growth then stalled.
Previously, the Financial Service Bloomberg and the “Wall Street Journal” reports that PayPal is in takeover negotiations with Pinterest. The two companies have not yet issued any statements. According to Bloomberg, a price of 70 dollars per share was being discussed – that would be a premium of around a quarter on the closing price on Tuesday. Investors were not that far ready to get into the information: The price reached just $ 63 on Wednesday. It is currently unclear whether a conclusion will be reached, and the conditions could also change, the reports said.
Pinterest began as a place where users can save photos from the Internet on so-called pinboards on certain topics – for example, when they are planning a vacation or want to redesign their home. Meanwhile, Pinterest also sees itself as a visual search engine in which software can identify similar objects. On the basis of this ability, the service wants to play an increasingly important role in online trading – so that you can buy the things you see right away. This could be a starting point for PayPal.
Paypal is currently also due to the boom in online shopping in the corona pandemic to a market capitalization of 320 billion dollars. The service was once part of the online trading platform Ebay. Pinterest was one of the winners of the corona pandemic last year: More people used the lockdown time for the app. With the removal of the corona restrictions, the number of users fell again at the beginning of summer. The advertising business was still better.