Pinterest Stock Slides In Premarket Following Analyst’s Downgrade: Retail Sentiment Worsens
Pinterest issued a sub-par fourth-quarter revenue guidance when it reported its third-quarter results in early November.
Social e-commerce company Pinterest, Inc.'s ($PINS) shares fell sharply in premarket trading on Monday after an analyst downgraded the stock. Some of the weakness could also be traced back to across-the-board negativity as rate-cut hopes dim, pressuring stocks.
Jefferies analysts downgraded Pinterest to ‘Hold’ from ‘Buy’ and also cut the price target for the stock to $32 from $40, TheFly reported. The new price target suggests an upside potential of merely 4.4%.
The stock received downward price target adjustments from a couple of analysts last week. While Cantor Fitzgerald reduced the price target from to $36 from $37, KeyBanc took it down to $37 from $39. Both analysts have bullish recommendations for the stock.
Last month Morgan Stanley analyst Brian Nowak reduced his Pinterest price target to $35 from $37 while maintaining an ‘Equal-Weight’ rating. The analyst said the company's next few quarters will likely see challenging comps due to food and beverage weakness, leap day, and forex benefits According to Nowak, these will likely hold back growth, offsetting the benefits from micro-level innovation.
Pinterest issued a sub-par fourth-quarter revenue guidance when it reported its third-quarter results in early November.
PINS sentiment and message volume January 13, 2025, premarket as of 5:34 am ET | Source: StocktwitsOn Stocktwits, sentiment toward Pinterest stock fell to ‘bearish’ (43/100) from ‘bullish’ a week ago, with message volume tapering to ‘low.’
Retail watchers of the stock are pinning their hopes on a potential TikTok ban in the U.S., as they see the move benefiting Pinterest.
In premarket trading, Pinterest stock was down 3.26% at $29.66 as of 4:55 a.m. ET. The stock has gained 5.7% so far in January, reversing some of the nearly 27% loss it witnessed last year.
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