Tuesday October 29th, 2020 saw Pinterest’s stock jump over 40% when markets opened.
It jumped because people were using Pinterest to search for DIY project ideas for their homes during covid.
This increased Pinterest’s ad revenue on top of any potential affiliate sales they might make through their website.
Pinterest stock settled back down to a meager 20% jump at the end of the day.
That puts Pinterest’s market cap, how much the company is worth if it were to be bought out, at around $40 billion.
Etsy’s market cap, on the other hand, is around $15 Billion.
Before the jump in stock price, Pinterest and Etsy were more equals, with market caps around $30 billion and $15 billion, respectively.
Which was why we suggested that Pinterest and Etsy should merge.
But now, with Pinterest growing ahead of Etsy, we suggest Pinterest actually takeover Etsy.
This would make the Pinterest-Etsy (Pinteresty sounds like a good couple’s name, right?) company a juggernaut in the home DIY, search, stay-at-home moms doing projects, e-commerce category.
Their combined market cap wouldn’t be $55 billion ($40 billion Pinterest + $15 billion Etsy).
It would more likely be worth $60-80 billion as it saves money through cost synergies, leverage cloud computing needs to ask for more bulk rates from AWS, office supplies, and other tech negotiations, and merging of redundant departments to slim down the amount of employees.
If you’re someone with the power to make this merger happen, make it happen.
If you’re not, share it with someone who is.