Shares of Pinterest (NYSE:PINS) took a hit on Tuesday, falling 5.5%. The growth stock's decline extends a brutal pullback after PayPal (NASDAQ:PYPL) said on Sunday that it was not pursuing an acquisition of the company, dispelling rumors that PayPal could buy Pinterest for $70 per share.
News first broke on Oct. 20 that PayPal might have been considering buying Pinterest. The report initially sent shares soaring since the rumored buyout price up for consideration was $70, a 26% premium to where the stock was trading the previous day.
But shares of the visual search and media platform have fallen sharply this week, declining a total of 17.5%, as investors digest the implications of this weekend's news that PayPal is not buying the company.
Adding to the bearish news for Pinterest stock, influential investor Cathie Wood's ARK Next Generation Internet ETF reportedly unloaded more than 336,000 shares of Pinterest on Monday.
Pinterest is scheduled to report third-quarter results on Thursday, Nov. 4. Investors will likely be looking to see how much damage recent changes to iOS ad tracking and targeting have done to its revenue trajectory. While revenue for the period will likely be up sharply, there are concerns the company could miss its guidance, the way that Snap did.