Monness analyst Brian White has maintained their neutral stance on PINS stock, giving a Hold rating today.
Geoff Meacham has given his Hold rating due to a combination of factors that indicate Pinterest is facing a challenging period ahead. Despite efforts to enhance the platform for advertisers, improve user experience, and expand its shopping features, Pinterest is navigating a highly competitive environment and an economic downturn that could bring darker days. The company’s mixed fourth-quarter results and a less-than-optimistic first-quarter outlook for 2024, coupled with lower-than-anticipated sales and earnings per share, suggest caution is warranted. Additionally, strategic partnerships with Amazon and Google, while positive, may not be enough to offset the headwinds faced by the company.
While Pinterest has shown robust monthly active user growth, the company’s global average revenue per user fell short of estimates. The company’s revenue growth did accelerate year-over-year, but not enough to meet analysts’ expectations. The advertising sector showed signs of resilience, yet there were weaknesses in segments like food and beverage towards the end of the quarter. Although there is optimism about the digital market’s stability and potential improvement, the need to adjust 2024 revenue and earnings projections reflects the uncertainty surrounding Pinterest’s near-term financial performance. Hence, a Hold rating appears to be a prudent stance until clearer signs of growth and profitability emerge.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $33.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Pinterest (PINS) Company Description:
Founded in 2000, California-based Pinterest, Inc. provides a visual discovery engine in the United States and internationally. The company operates a pinboard-style photo-sharing website and allows users to create and manage theme-based image collections such as events, interests, and hobbies.
Read More on PINS:
- Pinterest Stock (NYSE:PINS) Down on Mixed Q4 Results
- Options Volatility and Implied Earnings Moves Today, February 08, 2024
- #SocialStocks: Meta and Snap experience contrasting earnings outcomes
- Pinterest call volume above normal and directionally bullish
- Wall Street more bullish on Snap ahead of earnings
