Pinterest Stock Dips After Price Target Cut, Trump’s Meeting With TikTok CEO: Retail Shrugs Off Weakness

Social e-commerce company Pinterest, Inc.’s ($PINS) stock retreated early Tuesday as traders reacted to Morgan Stanley's downward price target adjustment.

In a note released late Monday, Morgan Stanley analyst Brian Nowak maintained an ‘Equal-Weight’ rating for Pinterest stock and reduced the price target from $37 to $35. 

The new price target, which assumes a compounded annual growth rate of about 14% for revenue between 2024 and 2028,  suggests 15.5% upside potential from current levels.

The analyst said he updated the model for the recent results, lowering the 2025 revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) estimates by 3% and 8%, respectively.

Morgan Stanley said the company's next few quarters will likely see challenging comps due to food and beverage weakness, leap day, and forex benefits. The firm said these will likely hold back growth, offsetting the benefits from micro-level innovation.

Nowak said he will continue to monitor signs of improving micro ad offerings to become more constructive. These products take a few quarters to ramp up, potentially benefiting just as comps ease in the second half of 2025. 

Morgan Stanley said Pinterest must sustain revenue growth in the mid-to-high teens or achieve acceleration to over 20% if it has to consistently outperform. 

PINS sentiment and message volume December 17, 2024, as of 10:03 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Pinterest stock improved from ‘bearish’ a day ago to 'bullish' (55/100), with message volume rising to ‘high’ levels.

At last check, Pinterest stock was down 1.72% at $29.78. Some of the weakness may also be due to President-elect Donald Trump meeting with TikTok CEO Shou Chew at his Mar-a-Lago residence on Monday.

China’s ByteDance-owned TikTok is facing the prospect of being banned in the U.S. by the Jan. 19 deadline if the short-form video hosting service platform does not sell itself to a non-Chinese owner. 

TikTok, with its wide reach among young people, has emerged as a potent rival to mainstream U.S. social media platforms. 

Pinterest stock is down over 18% this year, underperforming the Global X Social Media ETF ($SOCL), which is up about 11%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<