Pinterest Reports Mixed Quarterly Results, Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy PINS?
Source: NASDAQ.COM
- Significant Stock Decline: Pinterest's shares closed at $15.42, down 16.83%, primarily due to mixed quarterly results and a weaker revenue outlook, raising investor concerns about future performance.
- Surge in Trading Volume: The company saw trading volume reach 66 million shares, approximately 311% above its three-month average of 16.1 million shares, indicating strong market reactions to its financial status.
- Strong User Growth: Despite challenges, Pinterest reported a 12% year-over-year increase in global monthly active users for Q4, reaching 619 million, surpassing Wall Street's expectation of 613 million, demonstrating the platform's ongoing appeal.
- Lowered Revenue Guidance: Pinterest projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, reflecting pressure from retail advertisers cutting budgets due to tariffs.
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Analyst Views on PINS
Wall Street analysts forecast PINS stock price to rise
24 Analyst Rating
18 Buy
6 Hold
0 Sell
Strong Buy
Current: 18.540
Low
30.00
Averages
38.41
High
50.00
Current: 18.540
Low
30.00
Averages
38.41
High
50.00
About PINS
Pinterest, Inc. (Pinterest) offers visual search and discovery platform. The Company’s primary service, Pinterest, can be accessed through its mobile application or the Web. People use Pinterest to find ideas. As they browse Pinterest content, Pins, they fine-tune their tastes and find the idea. Users interact with the platform in multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from brands. It has approximately 553 million monthly active users across the world. Content on Pinterest comes from a variety of sources, including retailers, brands, creators, publishers and users. It acquires that content via a range of methods, including product catalog uploads, direct publishing, and user curation. Content formats include images that allow the user to click into an idea to learn more, videos that provide the steps of an idea, and products that brands and merchants upload from catalogs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: This price target cut may lead to decreased investor confidence in Pinterest, especially as reduced retail spending could further suppress advertising revenues in the current economic climate.
- Industry Impact: With multiple analysts lowering their price targets for Pinterest, this reflects broader market concerns regarding social media advertising spending, potentially affecting investor sentiment across the entire sector.
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- Delivery Outlook: Tri Pointe expects to deliver between 1,200 and 1,400 homes in Q4, demonstrating stable delivery capabilities in the current market environment, which enhances its attractiveness to investors.
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- Strong User Growth: Despite challenges, Pinterest reported a 12% year-over-year increase in global monthly active users for Q4, reaching 619 million, surpassing Wall Street's expectation of 613 million, indicating sustained user attraction on the platform.
- Sales Outlook Downgrade: The company projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, suggesting pressure on future revenue growth that may affect investor confidence.
- Analyst Downgrades: Multiple Wall Street firms downgraded Pinterest's stock or reduced target prices following the earnings report, with concerns including decelerating growth, monetization challenges, and intensified competition due to advancements in AI.
See More
