To go along with that price target, Kessler initiated coverage of PINS stock with an “outperform” rating. For comparison, the analyst consensus price target for PINS stock is $28.73 per share. This marks a potential upside of about 20% from the stock’s closing price on Wednesday. Specifically, the firm and analyst expect PINS stock to reach $33 per share. That price target comes from Raymond James analyst Aaron Kessler. On the bottom line, Pinterest features a net margin of 2.21%, ranked higher than 53.2% of sector rivals.Pinterest (NYSE: PINS) stock is on the move Thursday after a new price prediction gave investors in the social media company hope. In sharp contrast, the median level for the interactive media industry sits at 6.3%. Perhaps most prominently, its three-year revenue growth rate stands at 37.7%. On paper, the company brings some exciting stats to the table.
Essentially, the business may be a possible value trap. Conclusion: Pinterest Stock Might be a Value TrapĪnother reason why investors may want to be extremely careful with PINS stock centers on its underlying financial metrics. The average PINS price target is $26.47, implying 13.56% upside potential. Turning to Wall Street, PINS stock has a Hold consensus rating based on four Buys, 14 Holds, and zero Sells assigned in the past three months. Fundamentally, it’s wiser for stakeholders to consider selling into strength. Therefore, the uptick in MAUs may only be temporary for PINS stock. Unfortunately, doing so will likely spark recession risks, which also pose problems for the consumer. higher inflation).Īs a result of higher inflation, the central bank must act aggressively. However, such sentiments will erode quickly if the greenback’s purchasing power declines rapidly (i.e. The reason why this juxtaposition is so significant is because Pinterest’s business aligns with future planned purchases of goods and experiences. That might be an unprecedented decline in purchasing power. In this period, purchasing power declined by a staggering 11%.
However, from Q1 2021 to Q3 2022, Pinterest’s MAUs declined from 478 million to 445 million (the aforementioned 7% loss). During the same period, the purchasing power of the U.S. However, this optimistic thesis may be unlikely, and that’s because of purchasing power data.īetween Q1 2020 and Q1 2021, Pinterest’s MAUs increased from 367 million to 478 million (a 30% rise). To be fair, a case can be made that the bump-up in MAUs for Q3 could spark a turnaround. A count of 445 million still symbolizes nearly a 7% loss from the peak. Since then, MAUs have steadily dipped lower. According to data compiled by, Pinterest’s MAU tally peaked during Q1 2021, when it reached 478 million. Essentially, the business faces fundamental challenges that should not be ignored.įor one thing, the improvement in MAU count represents a relative uptick. While not taking anything away from the enormous rally of PINS stock, investors must recognize that moving forward, strong performances may be harder to come by. At the moment, early bird investors only gained about 31%, which is somewhat disappointing.Ĭonsidering that steep obstacles remain, it may be time to consider selling PINS stock into strength. Also, it’s worth noting that Pinterest’s initial offering price was $19 a share. Since the beginning of this year, PINS stock has fallen nearly 36%, reflecting a significant uphill battle ahead.
Of course, one solid earnings report usually doesn’t change the entire trajectory of an embattled organization. Last Friday, PINS stock gained nearly 14% in equity value. Amid subscriber losses in rival social media platforms, going in the opposite (and positive) direction certainly helps Pinterest’s case.
Per TipRanks reporter Shrilekha Pethe, Wall Street may have been reassured that Pinterest stabilized its user base. On the top line, “revenue rose 8% year-over-year to $684.55 million and beat the consensus by $18.37 million.” Perhaps most significantly, global monthly active users stood at 445 million, an improvement over Q2’s haul of 433 million.
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