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PayPal’s Shares Surge By 5% Pre-Market After Confirming It Won’t Buy Pinterest Right Now

By:
Hassan Maishera
Published: Oct 25, 2021, 12:44 UTC

The shares of PayPal are up by more than 5% at Monday’s pre-market trading session after the payment giant confirmed that it is not interested in acquiring Pinterest at the moment.

PayPal

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The shares of PayPal are up by more than 5% at Monday’s pre-market trading session after the fintech company revealed that it won’t buy Pinterest now.

PayPal Won’t Acquire Pinterest Now

PayPal, one of the leading payment platforms in the United States, has admitted that it won’t buy Pinterest at the moment. The confirmation comes after numerous rumors in the market that PayPal is looking to expand its services.

Last week, sources told Bloomberg and CNBC the financial giant is in advanced talks to acquire Pinterest. At the time, the rumor led to Pinterest’s stock price to surge by more than 12%, leading the stock to be halted twice. Furthermore, the shares of PayPal dipped at the time of those reports.

PayPal has now told its investors that it is not interested in acquiring Pinterest at the moment. The company said, “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.”

According to the sources, PayPal’s interest in Pinterest stems from the rising competition from e-commerce platform Shopify. Shopify has increased investment in certain areas in a bid to merge e-commerce and fintech. By acquiring Pinterest, PayPal could compete with Shopify in the social commerce sector and expand its services.

The playbook is similar to what Facebook has been doing with its Instagram platform. The social media giant is seeking to make Instagram shoppable as it has started testing the Shop Tab feature on the platform.

PYPL stock chart. Source: FXEMPIRE

PYPL Up By More Than 5%

The news that PayPal isn’t interested in acquiring Pinterest has sent its shares soaring during Monday’s pre-market trading session. At the time of writing, PYPL is up by 5.43% and is trading at $253.13 per share.

The rally comes after PYPL closed Friday at $240.20, down by 1.24%. Year-to-date, PayPal hasn’t performed great, with its stock price only up by 2.5%.

About the Author

Hassan is a Nigerian-based financial Journalist and cryptocurrency investor.

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