Pinterest CEO Fires Staff for Creating Layoff Tracking Tool Amid Restructuring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy PINS?
Source: Newsfilter
- Layoff Announcement: Pinterest revealed plans to lay off less than 15% of its workforce and reduce office space as part of a restructuring aimed at reallocating resources towards AI projects, with layoffs expected to be completed by the end of September, indicating a critical transformation moment for the company in the industry.
- Internal Tool Controversy: Several engineers developed an internal software tool to quantify layoffs, which CEO Bill Ready strongly opposed, resulting in the dismissal of those involved, emphasizing the need to avoid obstructionist behavior to maintain team cohesion and alignment with the company's direction.
- AI Investment Focus: Pinterest is significantly investing in AI to deliver more personalized and relevant content, aiming to enhance user retention and compete with digital ad giants like Meta and Google, reflecting the urgency of the company's competitive positioning in the market.
- Market Response and Challenges: Pinterest's stock has dropped 20% this year, with investors expressing concerns about consumer chatbots potentially stealing users and ad revenue, particularly in the shopping sector, highlighting the pressures and challenges the company faces against industry giants.
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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: 19.320
Low
30.00
Averages
38.41
High
50.00
Current: 19.320
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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