Pinterest (NASDAQ:PINS) didn’t do so well after its earnings reports came out on Monday. Though the stock is still sliding in Tuesday afternoon trading, it’s off its lows thanks to some new analysts stepping in to provide perspective, and ultimately, support.
First came perspective from Brian Fitzgerald, analyst with Wells Fargo. Fitzgerald pointed out that Pinterest engagement metrics are improving. That, along with improving potential for monetization, should give Pinterest investors reason enough to stick around. Granted, the macroeconomic environment would pose a challenge, Fitzgerald noted, but there is still reason to smile. Meanwhile, Brian White with Monness, Crespi, Hardt was a bit more subdued. However, he still noted that cost structures and improving user counts are present.
Pinterest itself even offered some reasons for hope. Perhaps the biggest is its upcoming plan is to make all of its videos “shoppable.” The idea comes from its Idea Pins concept, introduced back in 2021, that established short videos on the site to begin with. Now, Idea Pins will get the added advantage of having people able to order the things seen in said videos. Again, the macroeconomic trends will encourage or limit that concept accordingly. However, a new avenue for monetization is seldom not worth a closer look.
Meanwhile, Wall Street is taking a cautious angle, but still largely in line with both Brians mentioned above. Analyst consensus calls Pinterest a Moderate Buy. With an average price target of $28.29, the stock has 7.73% upside potential.
