Pinterest, Inc.'s recent 40% stock dip, driven by economic uncertainty and reduced ad budgets, presents a potential entry point for long-term investors. Despite market pressures, Pinterest has shown resilience with strong revenue growth, increasing ARPU, and substantial jumps in adjusted EBITDA and net income. The company maintains stable gross margins (75-79%) and trades at a significant discount compared to peers, indicating potential undervaluation.
Despite a 15% stock decline, I maintain a "buy" rating for Pinterest, as the company's long-term growth story is intact, driven by growing user engagement and monetization from its targeted AI investments. Its Q4 FY24 showed strong revenue and MAUs reaching an all-time high, but investor confidence was hit by declining ad pricing and rising costs, especially at a time when revenue is expected to slow down. The management expects Q1 revenues to grow at a slower rate of 13-15% YoY, with a sizable sequential drop in margins. Plus, amid the tariff uncertainty, the stock's forward estimates have been slashed.
Pinterest (PINS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Meta Platforms META and Pinterest PINS are well-known social commerce providers. Social commerce is a subset of e-commerce, which essentially means using social media platforms to promote and sell products or services.
The recent stock market correction has offered attractive deals for long-term investors. One industry that is turning up great values is social media.
Pinterest (PINS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Pinterest's Q4 2024 earnings report showed 11% user growth and 18% revenue growth, further de-risking valuation compared to its $35/share price one year ago. Bill Ready's AI-focused strategy has driven significant user and revenue growth, with 553 million monthly active users and strong international revenue expansion. Pinterest's Owner's Yield is an impressive 10.5%, making it one of the most attractive tech stocks among the 60 I've assessed.
To start 2025, I placed Pinterest (PINS -3.75%) on my list of top stocks to buy.
Pinterest Inc (NYSE:PINS) stock is 4.3% higher in premarket trading, after Guggenheim raised its rating from "neutral" to "buy" and increased the price target from $39 to $40.
The latest trading day saw Pinterest (PINS) settling at $31.60, representing a +0.96% change from its previous close.
In the latest trading session, Pinterest (PINS) closed at $32.07, marking a +0.38% move from the previous day.