70139629
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Payment system $PayPal(PYPL.US$ is in talks to buy social media platform $Pinterest(PINS.US$ . The deal, estimated at $40 billion would give Paypal access to Pinterest’s social media network and entrench it further in the e-commerce space.
However, some investors and Analysts have doubt about this potential purchase and soon showed in their stocks price.
Shares of $PayPal(PYPL.US$fell 5.9%, dropped $15.15 to $243.21. That was on top of a 4.9% drop on Wednesday. PayPal lost more than $30 billion in market value.
$Pinterest(PINS.US$fell 2.1%. They had jumped 13% Wednesday.
Pinterest has less of a record in e-commerce. It generates most of its revenue from advertising, not shopping. PayPal would have to spend resources to help make Pinterest into a commerce platform while also integrating it with PayPal’s other properties.
A similar motivation was part of the rationale for $Block(SQ.US$ $29 billion deal for $Afterpay Ltd.(AFTPF.US$ . Square announced in August that it plans to acquire the buy-now-pay-later company. In that deal, Square’s Cash App would integrate with Afterpay and introduce the more than 70 million Cash App users to items they might want to buy at Afterpay merchants. This deal seems much more ideal than the former.
But who knows? Maybe the management of Paypal sees some potential from the deal. Let's grab some popcorn and keep watching what's going to happen to them.
Source:
PayPal Stock Falls After News of Pinterest Talks
However, some investors and Analysts have doubt about this potential purchase and soon showed in their stocks price.
Shares of $PayPal(PYPL.US$fell 5.9%, dropped $15.15 to $243.21. That was on top of a 4.9% drop on Wednesday. PayPal lost more than $30 billion in market value.
$Pinterest(PINS.US$fell 2.1%. They had jumped 13% Wednesday.
Pinterest has less of a record in e-commerce. It generates most of its revenue from advertising, not shopping. PayPal would have to spend resources to help make Pinterest into a commerce platform while also integrating it with PayPal’s other properties.
A similar motivation was part of the rationale for $Block(SQ.US$ $29 billion deal for $Afterpay Ltd.(AFTPF.US$ . Square announced in August that it plans to acquire the buy-now-pay-later company. In that deal, Square’s Cash App would integrate with Afterpay and introduce the more than 70 million Cash App users to items they might want to buy at Afterpay merchants. This deal seems much more ideal than the former.
But who knows? Maybe the management of Paypal sees some potential from the deal. Let's grab some popcorn and keep watching what's going to happen to them.
Source:
PayPal Stock Falls After News of Pinterest Talks
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$Canaan(CAN.US$ Summarizing the gradual clearance... it's so difficult. Any long-term technical analysis is all hehe. One sentence above can destroy an industry
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Hey guys, welcome to the Fresh New Monday! Now, it is time to review our top 5 stocks list for the previous week. Get started!
Welcome the new top gainer in our top popular list- $Eastman Kodak(KODK.US$ The share price was up o
Welcome the new top gainer in our top popular list- $Eastman Kodak(KODK.US$ The share price was up o
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