Pinterest’s unique visual discovery platform and high-intent user base provides an attractive platform for advertisers, we expect steady user growth going forward and increasing engagement metrics. The analyst is bullish on Pinterest stock primarily because he expects the company to steadily grow over the long term. His $33 price target suggests another 20% upside from here. Pinterest stock could climb another 20%Īaron Kessler assumed coverage of the social media company on Friday with an outperform rating. The Motley Fool has a disclosure policy.Pinterest Inc ( NYSE: PINS) has already gained about 25% this year but a Raymond James analyst is convinced it’s not done pleasing its shareholders just yet. The Motley Fool has positions in and recommends and Pinterest. Jon Quast has positions in and Pinterest. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. *Stock Advisor returns as of April 24, 2023 and Pinterest wasn't one of them! That's right - they think these 10 stocks are even better buys. They just revealed what they believe are the ten best stocks for investors to buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* When our analyst team has a stock tip, it can pay to listen.
Therefore, this stock will likely fail to beat the market until one or both of these factors improve. That said, Pinterest isn't making progress on profitability at the moment. For example, Amazon will now be promoting products from its ad network on Pinterest, this being the first time Pinterest will allow third-party ads - a promising development. And the company continues to bolster its capabilities. Many believe its inspiring image-browsing platform can make it a superior platform for advertisers. On one hand, the platform shows immense promise. It's discouraging for Pinterest shareholders. This implies greater losses in Q2 than in Q1. However, management also said it expects its expenses to grow at a double-digit pace, outpacing revenue growth. That's right about the level of growth that management expects for the upcoming second quarter. Last quarter, Pinterest's revenue was up 4% year over year, and it was up 5% in Q1. Moreover, the company's loss from operations increased dramatically to $244 million, compared to only a $4 million loss in the same quarter of last year. In Q1, Pinterest's gross margin fell from 75% in the prior-year period to 72% now. And with ad rates falling, it's getting less profitable, which is upsetting the market as well today. However, in Pinterest's case, it continues spending money to invest in its technology. And with users growing faster than revenue, it's obvious that ad rates were down for the company in Q1, as they were for other advertising technology companies. With 463 million, the company's MAUs were up 7% year over year, leading to 5% revenue growth. In Q1, Pinterest had 463 million monthly active users (MAUs), the second-highest number that the company has ever seen during a quarter - only the first quarter of 2021 was better. Shares of image-browsing platform Pinterest (NYSE: PINS) were punished on Friday after the company reported financial results for the first quarter of 2023. Save my name, email, and website in this browser for the next time I comment. Sign me up for the Money Morning newsletter Your email address will not be published. Or to contact Money Morning Customer Service, click here. Comment on This Story Click here to cancel reply.
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