Pinterest Price Target Cut to $25 Amid Deteriorating Fundamentals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy PINS?
Source: stocktwits
- Price Target Reduction: Evercore ISI has cut Pinterest's price target from $40 to $25 and downgraded its rating from 'Outperform' to 'In Line', indicating a clear deterioration in the company's fundamentals as revenue growth continues to slow.
- Revenue Growth Deceleration: Pinterest's revenue growth rate fell from 17% in Q2 to 16% in Q3, and further down to 13% in Q4, highlighting the severe challenges the company faces in an increasingly competitive market.
- Market Reaction: Following the Q4 revenue miss against Wall Street expectations, Pinterest's stock dropped over 21% in pre-market trading on Friday, and has declined nearly 33% over the past month, reflecting a significant loss of investor confidence.
- Increased Competitive Pressure: Analysts noted rising competitive intensity from AI-driven rivals like Google and Meta, compounded by the impact of tariffs from the Trump administration on major retailers' advertising budgets, which has further exacerbated Pinterest's market challenges.
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Analyst Views on PINS
Wall Street analysts forecast PINS stock price to rise
24 Analyst Rating
18 Buy
6 Hold
0 Sell
Strong Buy
Current: 18.540
Low
30.00
Averages
38.41
High
50.00
Current: 18.540
Low
30.00
Averages
38.41
High
50.00
About PINS
Pinterest, Inc. (Pinterest) offers visual search and discovery platform. The Company’s primary service, Pinterest, can be accessed through its mobile application or the Web. People use Pinterest to find ideas. As they browse Pinterest content, Pins, they fine-tune their tastes and find the idea. Users interact with the platform in multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from brands. It has approximately 553 million monthly active users across the world. Content on Pinterest comes from a variety of sources, including retailers, brands, creators, publishers and users. It acquires that content via a range of methods, including product catalog uploads, direct publishing, and user curation. Content formats include images that allow the user to click into an idea to learn more, videos that provide the steps of an idea, and products that brands and merchants upload from catalogs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Outlook Downgrade: The company projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, suggesting pressure on future revenue growth that may affect investor confidence.
- Analyst Downgrades: Multiple Wall Street firms downgraded Pinterest's stock or reduced target prices following the earnings report, with concerns including decelerating growth, monetization challenges, and intensified competition due to advancements in AI.
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