YESTERDAY afternoon's Wall Street session saw stocks fall, with PayPal down by around five per cent and Pinterest by two per cent.
The drop came after a momentary high on Wednesday with talks of acquistion of $70 per share, valuing the digital pinboard site at around $45bn (£33bn).
Michael Hewson, analyst at CMC
Markets, is unsurprised by the share drop: "investors weigh the wisdom of paying up to $45bn for a social media company that in its last earnings' update lost 24m users."
PayPal currently owns the mobile payments service Venmo, and has been expanding in the evermore competitive "buy-nowpay-later" sector with their "Pay in 4" offering.
City A.M. understands the payments giant is now looking to expand its social media capabilities to further enhance its appeal to retailers.
Some analysts are questioning whether acquisition is the most strategic move for PayPal, with Hewson saying, "it seems rather a steep price tag for a company whose business model is advertising and not payments."
(c) 2021 City A.M., source Newspaper