Is PayPal stock a buy as shares slide amid fears Pinterest deal is in jeopardy?

On Thursday, PayPal Holdings Inc. (NASDAQ:PYPL) shares fell by 5.3% extending declines since reports emerged about a potential Pinterest Inc. (NYSE:PINS) acquisition to over 10%. 

Bloomberg reported on Wednesday citing sources familiar with the matter that the fintech platform was exploring options to acquire the social media platform in a deal worth about $45 billion.

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However, WSJ said Wednesday PayPal shareholders were not keen on the all-stock acquisition. Pinterest shares spiked nearly 13% on Wednesday after the news broke. However, they pulled back 2% on Thursday amid fears the deal may be in jeopardy.

Is the PYPL pullback an opportunity to buy?

From an investment perspective, PayPal is still one of the best growth stocks in the fintech space. The company has expanded its product offering to include cryptocurrency transactions and Buy Now, Pay Later payments.

As a result, analysts expect its earnings per share to grow by 71% this year before rising at an average annual rate of about 24% over the next five years. Therefore, it is a growth investor’s dream stock.

Therefore, with the recent pullback valuing the stock at a more attractive forward P/E ratio of about 39.12, it could be time to buy ahead of its exciting growth prospects.

Technically, PayPal shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted closer to oversold conditions, creating an opportunity for a rebound.

Therefore investors could target potential rebounds at about $255.09, or higher at $266.41, while $234.68 and $223.71 are support levels.

The sell-off is an opportunity to buy

In summary, although the Pinterest acquisition remains unclear, PayPal is still one of the best growth stocks in the fintech space. In addition, the stock trades a reasonable forward P/E ratio, making it a compelling opportunity for investors.

Therefore, with shares falling closer to oversold conditions, it could be time to invest in PayPal stock.

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