PayPal is in early talks to buy Pinterest, reports say

Trader reax: Pinterest shares rose 12.8% on the news, bringing its market cap past the $40 billion mark, while PayPal shares sank by 4.9%. Pinterest's largest outside shareholder is T. Rowe Price, with a 7.2% stake.

The bottom line: "PayPal rode a wave of digital-payment adoption over the course of the coronavirus pandemic to post record numbers of users and transaction volumes. That has propelled the stock, which would likely be used to help pay for any Pinterest deal, and given the company a market value of some $300 billion." — Dana Cimilluca and Cara Lombardo, WSJ