Pinterest shares climbed on Wednesday, and were up nearly +13% for the day., following a report that suggested the company is being considered for a takeover by online payments group PayPal .
According to Bloomberg News, PayPal is looking at buying the social media platform, and is in talks for a potential price of $70 a share – which implies Pinterest being valued at around $39 billion.
Late July, Pinterest reported second quarter results that showed +9% year-over-year increase in overall monthly active users to 454 million, well below the Refinitiv forecast of 487.1 million, and much a slower pace compared to the 30% gains recorded over the first quarter. U.S. users fell -5%, compared to a +9% increase in the first quarter.
Revenues more than doubled to $613 million, exceeding analysts' expectations of $562.1 million. The company’s non-GAAP earnings were 25 cents per share, which is 10 cents ahead of the Street consensus forecast.
Pinterest will publish its third quarter results on Wednesday, October 27. Analysts are expecting non-GAAP earnings of 23 cents per share on revenues of $631.24 million.