Shares of visual search and media platform specialist Pinterest (PINS 0.96%) fell sharply on Wednesday, extending a sharp descent from levels in the $60s just last week. As of 12:30 p.m. EDT, the growth stock was down more than 4% on Wednesday.
Pinterest stock's decline on Wednesday likely reflects more downward momentum from news this weekend that PayPal Holdings wasn't buying Pinterest, as previous reports suggested could happen.
For the week, Pinterest shares are now down about 21%. Even worse, shares are down 27% over the past five trading days.
"In response to market rumors regarding a potential acquisition of Pinterest by PayPal, PayPal stated that it is not pursuing an acquisition of Pinterest at this time," PayPal said in a press release on Sunday.
Given that the rumored buyout price was $70 per Pinterest share, it's not surprising that Pinterest stock has tumbled in the aftermath of this news.
Pinterest's business has been benefiting from extraordinary top-line momentum recently, with second-quarter revenue growing 125% year over year (the company was up against an easy year-ago comparison) and third-quarter revenue expected to increase in the low 40% range.
But Pinterest's headwinds in monthly active users (MAUs) have likely worried some investors. "As of July 27, 2021, U.S. MAUs have declined approximately 7% and global MAUs have grown approximately 5% year over year," management said in its second-quarter update about the company's user engagement trends in the first month of the third quarter.
Investors may also have concerns that recent changes to Apple's iOS ad tracking and measurement will weigh on Pinterest's top line.
Pinterest will report its third-quarter earnings on Thursday, Nov. 4.