It’s safe to say that Wall Street’s expectations going into the earnings report weren’t overly optimistic. Analysts Lower Their Price Target for PINS Stock The average revenue per user in Q3 was up 37% from a year ago.Īs long as the company continues to generate more revenue per user, it should be able to grow total revenue even as its user base plateaus. Yet, the company still managed to post strong revenue growth for the quarter thanks in part to the fact that it was able to generate more revenue from each user. This was the second quarter in a row Pinterest saw its MAUs decline. However, Pinterest’s monthly active users fell short of expectations, coming in at 444 million versus an expected 460 million. Adjusted earnings per share of 28 cents easily beat the 23 cents analysts were calling for.ħ F-Rated Stocks to Sell Before We Reach Christmas Revenue rose nearly 43% from a year ago to $633 million. Pinterest delivered better-than-expected revenue and earnings despite a decline in its monthly user base. 4, although shares closed 5.9% higher on the day. PINS stock actually hit its 52-week low following the announcement of the company’s third-quarter results on Nov. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Average Revenue Per User Is Growing So, let’s dig deeper into my investment case for PINS stock. Well, we just may be there.Īlthough I don’t see the stock revisiting its pandemic highs, I do think investors who get in now will be rewarded. Meanwhile, the S&P 500 is down 2.07% in the past month.During my previous coverage of PINS stock, I recommended investors wait for shares to hit rock bottom before investing. It's returned a very healthy 17.61% in the past month, and is getting support nearly 6% above its 50-day moving average. The stock has been tenuously rallying, and is outpacing the broader market in recent weeks. The price target is $29.76, an upside of 35.52%.Īfter the earnings report, six analysts boosted their price targets or upgraded their ratings. And presumably, because users are interested in a topic, they would welcome (or at least not be hostile toward) ads for related products and services.Īccording to MarketBeat price-target data, Wall Street has a "hold" rating on Pinterest. Because users freely post items that interest them, advertisers can easily target specific categories. Pinterest has a big advantage when it comes to monetizing its user base. In the statement announcing Ready's hiring, Silbermann said, "In our next chapter, we are focused on helping Pinners buy, try and act on all the great ideas they see." While many social media users and observers may think of Pinterest primarily as a place to post fun pictures and create boards to reflect hobbies, travel, home decor or other areas of interest, the company is putting more emphasis on e-commerce. That's significant, as it signals that Elliott is not ready to reduce its stake any time soon. We commend Ben Silbermann and the Board on the leadership transition, and we look forward to continuing our collaborative work with Ben, Bill and the Board as they drive toward realizing Pinterest's full potential." As the market-leading platform at the intersection of social media, search and commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest's next phase of growth. The Elliott statement read: "Pinterest is a highly strategic business with significant potential for growth, and our conviction in the value-creation opportunity at Pinterest today has led us to become the Company's largest investor. Former CEO and Pinterest founder Ben Silbermann moves over to become executive chairman, a role with the board of directors. The investment company referred to new CEO Bill Ready, who took the helm in late June. In a statement, Elliott said it has "conviction" in Pinterest. Elliott Management, an activist investment firm that has stakes in PayPal (NASDAQ: PYPL) and Cardinal Health (NYSE: CAH), among other companies, is Pinterest's largest owner.
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