Pinterest Announces Layoffs Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 12 2024
0mins
Should l Buy PINS?
Pinterest's stock fell 3.01% and hit a 52-week low amid broader market weakness, with the Nasdaq-100 down 1.08% and the S&P 500 down 0.51%.
The company announced plans to lay off less than 15% of its workforce, impacting around 700 employees, as part of a strategy to reduce operational costs. This move is expected to incur a one-time charge of $35 million to $45 million but could lead to annual savings of approximately $175 million. The layoffs are part of a broader restructuring aimed at reallocating resources towards artificial intelligence roles, reflecting a strategic pivot to enhance market competitiveness despite current market pressures.
While the layoffs may provide long-term cost control, they could negatively impact employee morale and company culture in the short term. The market's reaction indicates concerns about Pinterest's ability to reaccelerate growth, especially in the U.S. and Canada.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PINS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PINS
Wall Street analysts forecast PINS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PINS is 38.41 USD with a low forecast of 30.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
18 Buy
6 Hold
0 Sell
Strong Buy
Current: 19.600
Low
30.00
Averages
38.41
High
50.00
Current: 19.600
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.
Seattle Seahawks Win Super Bowl, Dow Surpasses 50,000
- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
Seattle Seahawks Win Super Bowl with 29-13 Victory
- Market Surge: The Dow Jones Industrial Average soared over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating strong investor confidence despite a slight dip in futures trading this morning.
- Super Bowl Advertising Boom: NBC's 30-second ad spots averaged $8 million, with some exceeding $10 million, showcasing fierce competition in the advertising market as AI companies heavily invested in the event, highlighting the importance of brand visibility.
- Legal Action Intensifies: Novo Nordisk is suing Hims & Hers over its copycat weight-loss pills, leading Hims to announce the withdrawal of its product, resulting in a pre-market stock drop of over 20%, reflecting market sensitivity to legal risks.
- Meta Faces Major Trials: Meta is set to face two significant lawsuits in New Mexico and Los Angeles regarding the protection of child users and the mental health impacts on young users, which could have profound implications for its business and the social media industry.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Snap Shares Rebound Slightly as Analysts Upgrade Ratings
- Stock Rebound: Snap's stock closed at $5.22 on Friday, up 1.95%, despite a 24.68% decline this week, indicating a reassessment of the company's outlook by investors.
- Surge in Trading Volume: Trading volume reached 89 million shares, approximately 96% above the three-month average, reflecting increased market interest in Snap's stock.
- Analyst Rating Upgrades: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing the company's success in developing new revenue opportunities.
- Future Prospects: Snap plans to launch augmented reality Spectacles this year, which could provide an early-mover advantage, but may backfire if product quality does not meet expectations.
See More
Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
See More
Seattle Seahawks Win Super Bowl, Dow Surpasses 50,000
- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
Seattle Seahawks Win Super Bowl with 29-13 Victory
- Market Surge: The Dow Jones Industrial Average soared over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating strong investor confidence despite a slight dip in futures trading this morning.
- Super Bowl Advertising Boom: NBC's 30-second ad spots averaged $8 million, with some exceeding $10 million, showcasing fierce competition in the advertising market as AI companies heavily invested in the event, highlighting the importance of brand visibility.
- Legal Action Intensifies: Novo Nordisk is suing Hims & Hers over its copycat weight-loss pills, leading Hims to announce the withdrawal of its product, resulting in a pre-market stock drop of over 20%, reflecting market sensitivity to legal risks.
- Meta Faces Major Trials: Meta is set to face two significant lawsuits in New Mexico and Los Angeles regarding the protection of child users and the mental health impacts on young users, which could have profound implications for its business and the social media industry.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Snap Shares Rebound Slightly as Analysts Upgrade Ratings
- Stock Rebound: Snap's stock closed at $5.22 on Friday, up 1.95%, despite a 24.68% decline this week, indicating a reassessment of the company's outlook by investors.
- Surge in Trading Volume: Trading volume reached 89 million shares, approximately 96% above the three-month average, reflecting increased market interest in Snap's stock.
- Analyst Rating Upgrades: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing the company's success in developing new revenue opportunities.
- Future Prospects: Snap plans to launch augmented reality Spectacles this year, which could provide an early-mover advantage, but may backfire if product quality does not meet expectations.
See More
Snap's Stock Falls Nearly 25% This Week Despite Today's Gains
- Stock Volatility: Snap closed at $5.22 on Friday, up 1.95%, yet it has fallen 24.68% this week, indicating market concerns regarding its future performance.
- Surge in Trading Volume: On Friday, Snap's trading volume reached 89 million shares, approximately 96% above its three-month average of 45.4 million shares, reflecting investor attention on its stock fluctuations.
- Analyst Rating Changes: B. Riley upgraded Snap from Neutral to Buy, maintaining a $10 price target, citing successful development of new revenue opportunities, while Stifel upgraded its rating from Sell to Hold.
- User Growth Concerns: Although Snap's Q4 earnings beat expectations on Wednesday, lower-than-expected ad revenue and declining daily active users raised concerns about future growth, particularly in light of potential regulatory challenges.
See More
