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Following the dip in its price today, the PINS stock has wiped out gains made last week after the news hit the internet.
Pinterest Inc (NYSE: PINS) stock dropped as much as 11.13% to trade around $51.60 as of October 25, 2021, 6.23 a.m EDT. As the market opened, the stock is 12% down. In the past week, Pinterest shares have experienced increased volatility following news of possible acquisition by PayPal Holdings Inc (NASDAQ: PYPL). However, the hype dwindled after PayPal said on Sunday that it will not go ahead with the deal.
Notably, the acquisition deal had been anticipated to take place in the coming weeks, whereby analysts had calculated a cost of up to $45 billion. With the rumors having been clarified, it now leaves the LinkedIn acquisition by Microsoft Corp (NASDAQ: MSFT) back in 2016 for $26.2 billion as the largest acquisition of a social media company in history.
Following the dip in its price today, the PINS stock has wiped out gains made last week after the news hit the internet. According to market analytics provided by MarketWatch, the Pinterest stock has now dropped 24.09%, and 11.09% in the past three months and YTD respectively.
However, the PINS stockhas gained approximately 8%, 8.34%, and 15% in the past one month, five days, and one year respectively.
Following the announcement during the weekend, the PayPal stock jumped approximately 4.19% to trade around $250.48 at the time of reporting.
Notably, PYPL shares are now down approximately 18%, 8%, and 7% in the past three months, one month, and five days respectively. Nevertheless, they have gained approximately 27%, and 6% in the past year and YTD respectively.
PayPal and Pinterest Market Insight
Well, some of the answers lie in the quarterly reported numbers while some of the aspects are derived from the ongoing unpredictable Covid crisis.
Notably, PayPal is of the opinion that people do not have near loads of applications but a mega application. “No consumer is going to have 40 or 50 apps on their phone. There must be super apps that come together to consolidate all of your financial instruments. And by the way, those financial instruments include rewards points, and the ability to choose to buy now, pay later, or even to use QR codes,” said PayPal President and CEO Dan Schulman.
The has been notable competition in the payment industry especially after fintech companies harnessing blockchain technology tool ground. Although PayPal has invested in blockchain Ledger related services, the stiff competition arising from all corners is eating away its market share fast.
A survey conducted by MarketWatch indicates 45 ratings gave PayPal stock a Buy rating.