Monthly active users on Pinterest (PINS) dropped because engagement waned as Covid-19 restrictions were lifted and consumers ventured outside. Pinterest ended the quarter with 454 million monthly active users, below expectations of 482 million. Pinterest stock plunged 7% in reaction.
Why is PINS stock falling?
Pinterest PINS –3.21% shares tumbled after a downgrade by Guggenheim. The firm cited data that users were leaving the platform. Analysts downgraded the stock to Neutral from Buy and lowered the price target to $39 from $46. Pinterest (ticker: PINS) shares dropped more than 9% to $33.13 on Tuesday.
Will PINS stock recover?
PINS' stock price could see a minor rebound as it experiences accelerating revenue growth in 2H 2022, but returning to the $50 level might be very challenging. I assign a Hold investment rating to Pinterest, as its current valuation multiples appear to be aligned with the company's financial outlook.
Is Pinterest a good stock to invest in?
Despite fewer people on its platform, 2021 revenue came in at almost $2.6 billion, a 52% increase from year-ago levels. Moreover, Pinterest reported a profit of $316 million for the year, a considerable improvement over the $128 million loss in 2020.
What will PINS be worth in 5 years?
According to the latest long-term forecast, Pinterest price will hit $30 by the middle of 2023 and then $50 by the end of 2024. Pinterest will rise to $60 within the year of 2025, $70 in 2026, $80 in 2027, $90 in 2029 and $100 in 2032.
Is PINS a buy now?
Is PINS stock a buy right now? 25 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Pinterest in the last twelve months. There are currently 20 hold ratings and 5 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "hold" Pinterest stock.
What is the future of Pinterest?
That's an ARPU of $8.69 in 2022, $12.16 in 2023, and $15.81 in 2024. This translates into 2024 revenues of $6.81 billion. In 2021, Pinterest had an operating profit of $326.2 million on $2.6 billion in sales while spending $780.3 million on R&D.
Why is Pinterest stock so low?
Pinterest stock is down due primarily to an decrease in monthly active users. Management is working to drive engagement through creator-generated short videos and a more personalized shopping experience. Shares currently trade at 6.4 times sales, near the low end of their historical range.
Is PayPal buying Pinterest?
U.S. payments giant PayPal said it is not currently interested in buying social media platform Pinterest. Responding to what it called "market rumors," the financial technology company said Sunday in an update on its website that it is "not pursuing an acquisition of Pinterest at this time."
The tech stock sell-off hit the company hard today
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
What happened
Shares of tech stock Pinterest ( NYSE:PINS) plunged as much as 10% on Wednesday as growth stocks fell almost across the board. Shares closed the day down 8.4%.
So what
There wasn't any significant news out about Pinterest today, but shares of tech stocks were down sharply, and high-growth names seemed to be hit the hardest.
Now what
There's no reason to change your investment thesis in a company like Pinterest after today, and it may be a buying opportunity for long-term investors who have been looking for a cheaper share price to get in.
Key Points
The fallout from a rumored PayPal acquisition has sparked sharp selling in Pinterest shares.
NYSE: PINS
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What happened
Shares of visual search and media platform specialist Pinterest ( PINS -3.36% ) fell sharply on Wednesday, extending a sharp descent from levels in the $60s just last week. As of 12:30 p.m. EDT, the growth stock was down more than 4% on Wednesday.
So what
For the week, Pinterest shares are now down about 21%. Even worse, shares are down 27% over the past five trading days.
Now what
Pinterest's business has been benefiting from extraordinary top-line momentum recently, with second-quarter revenue growing 125% year over year (the company was up against an easy year-ago comparison) and third-quarter revenue expected to increase in the low 40% range.
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What happened
Shares of Pinterest ( NYSE:PINS) took a hit on Friday. The visual search and media platform provider's shares fell as much as 10.8%. As of 1:33 p.m. EDT, the stock was down 8.2%.
So what
"Cleveland Research says Q1 looks like it ended softer than mid-quarter expectations would indicate, and some agencies/partners noting a deceleration from Q4 levels," wrote Seeking Alpha author Jason Aycock.
Now what
Management indicated during its fourth-quarter update that it expected first-quarter revenue to grow at a rate in the low-70% range. At the time of this guidance, the company had more than a month of visibility into Q1, as the report was released on Feb. 4.
Strong Fundamentals
Pinterest reported revenue of $847 million with adjusted earnings of 49 cents a share. Revenue rose 20% from the same quarter last year. On top of that, the company managed to reach the first full year of profitability under GAAP, which is noteworthy.
The Bottom Line on PINS Stock
Several analysts are bullish on PINS stock . Brad Erickson, RBC Capital analyst, has a price target of $34 with a “sector perform” rating. The analyst stated that the results were “better than feared.” Further, UBS analyst Lloyd Walmsley has a price target of $35 with a “neutral” rating after the shares beat the fourth-quarter earnings beat.
Slowing Growth and PINS Stock
Pinterest bills itself as a unique social media platform. The company enables people to communicate using images, animated GIFs and videos rather than text and written messages.
Global Expansion
Pinterest is looking for new growth through international expansion. The company is pushing into international markets, launching in Brazil at the start of this year and expanding to Mexico in May.
Wait for PINS Stock To Bottom
Pinterest remains unique in the social media firmament, and while the amount of time people are engaging with the company’s platform is slowing as pandemic restrictions ease, the company still has plenty of growth opportunities ahead of it and continues to find ways monetize its user base.
What is Pinterest?
Pinterest is an image sharing and social media service. It's designed to allow users to discover and save ideas online using images, videos, and animated GIFs in the form of pinboards. The California-based company was created in 2009 by Ben Silbermann, Paul Sciarra, and Evan Sharp.
What is PINS stock price today?
PINS stock was up about 33 percent at $64.72 in pre-market trading as of 8:55 a.m. ET on Oct. 29. The stock fell 6.2 percent on Oct. 28 and closed at $49.25 with a market capitalization of $29.6 billion. PINS stock has fallen by 3 percent in the last five days, while it has risen by 95.9 percent in the last year.
PINS stock on Stocktwits
PINS stock has become a major talking point on Stocktwits and other social platforms. While some investors on Stocktwits see the strong third-quarter earnings results as a good reason to buy PINS stock, others were bearish and expect the stock to fall.
