Like most of the world last week when we heard the rumour of PayPal to Buy Pinterest we were very confused due to the reason? What is a digital wallet going to do with a site that gives hobby information to its users?
Whatever the reason for this news it has been squashed this morning after PayPal have announced that they are not interested in this acquisition and due to this the stock prices have gone crazy.
Image courtesy of Finance.Yahoo.com
After this rumour hit, Pinterest stock went from $51 a share to $62.64 which was a rise of over 20% in a single day. Since then the stock has pulled back to $58.06 and we expect once the market opens today it will go below $50 and maybe south of $40.
Image courtesy of Finance.Yahoo.com
PayPal on the other hand pulled back after this news. When a company has to raise 100s of Billions to acquire a company this usually happens plus the fact of this sale making no sense at all it went from $271.36 a share to $240.40. Today should see this shoot back up towards that original pricing.
