Hedge fund Elliott Management reportedly acquired a stake in an e-commerce company PayPal Collectibles (PYPL). On Wednesday, PYPL stock emerged in the news as one analyst speculated a merger with it Pinterest (pins) could be in the works.
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Elliott Management may be a major contributor to PayPal, according to A The Wall Street Journal report late on Tuesday.
At CFRA Research, analyst David Holt said Elliott, an activist investor, may push for a merger with social media company Pinterest. PayPal canceled merger talks with Pinterest in 2021.
Pinterest recently appointed Bill Reddy, the former CEO of PayPal, as its CEO. Ready was recently one of the CEOs of the alphabet (The Google).
Pinterest has a new CEO
“We suspect Elliott Management’s interest in PYPL may be to revive the potential for association with Pinterest after PayPal canceled its plans in October 2021,” Holt said. As a reminder, Elliott also acquired a 9% stake in PINS earlier in July 2022 and appointed (Pinterest) Bill Reddy as CEO, who served as PayPal’s chief operating officer from 2013 to 2019.
Holt added: “Mr Jahez’s extensive background in one of PayPal’s (Braintree) most growing regions could be beneficial as the company attempts to protect its stake in its core payments business. Similarly, we note that the financial position of both companies remains attractive to strategic activities, with budgets Clean and cost-ready structures to be the right size.”
PayPal stock jumped 12.2% to close at 86.42 days stock market today. Pinterest made a similar jump, rising 11.3% to close at 19.20.
Pinterest announces earnings on August 1. PayPal stock dividends are due August 2nd.
San Jose, California-based PayPal in February abandoned its five-year financial goals. In May, PayPal lowered its 2022 guidance on earnings per share, revenue, and total payment volume.
PayPal Stock Falling in 2022
For 2022, PayPal expects revenue growth in the range of 11% to 13% versus previous forecasts of 15% to 17% growth.
PYPL stock was down 59% in 2022 as of the market close on Tuesday. PayPal still has a market valuation of over $89 billion.
ex-parent ebay (ebay), which separated from PayPal in 2015, transferred payment processing from PayPal to Adyen in the Netherlands.
according to IBD stock check.
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