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Here’s Why Pinterest Stock (NYSE:PINS) Surged Yesterday
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Here’s Why Pinterest Stock (NYSE:PINS) Surged Yesterday

Story Highlights

Pinterest’s new Shuffles app is gaining huge popularity in just a short time from launch. The fact that the app has only recently been soft launched and is already so popular means that the app will undoubtedly create a rage when it is available publicly.

Shares of Pinterest Inc. (PINS) surged yesterday after its new app “Shuffles by Pinterest” seemed to have taken the internet by storm. The app is slated as the number 5 app in the iOS App Store under the ‘lifestyle’ category. PINS stock ended the day up 14.1% on August 25.

The app’s growing popularity is even more encouraging as it was soft-launched only recently on July 27 and has a relatively small user base. As per Sensor Tower, the app has seen around 338,000 installs so far.

The Shuffles app allows users to create collective collages. The collages made by this app are trending on TikTok as users can create the visual collage, set it to music, and have it shared on social media sites or even shared privately with friends.

The app even has some cool features like the ability to animate the collage as well as the ability to cut out parts of a picture from the gallery that can be added to the collage. The Shuffles app resonates well with Gen-Z users who are currently fixated on the idea of sharing and expressing every mood and occasion on social media publicly or with friends.

The app’s description says, “Want to curate a festival outfit? Visualize your dream bedroom. Moodboard your current aesthetic vibe? Or just express yourself by creating something beautiful, strange, or funny? You’ll love Shuffles.”

What is the Target Price for Pinterest Stock?

On TipRanks, PINS stock has a Moderate Buy consensus rating based on six Buys versus 17 Holds. The average Pinterest price target of $26.05 implies 8.5% upside potential to current levels. Meanwhile, the stock has lost over 34% so far this year.

Ending Thoughts

A lot is going on with Pinterest currently. New York-based Elliott Management Corp. has taken a 9% stake in Pinterest, which is well known for bringing about strategic changes to both companies’ leadership and business. Plus, the company is steering under the new CEO, Bill Ready, who took over after the 37% owner of PINS, Ben Silbermann, stepped down in June. Moreover, weak advertising spending and a decline in the global monthly active users (MAUs) are also dragging down the stock.

On the other hand, analysts on the Street also seem cautiously optimistic about the stock. And retail investors have reduced their stake in PINS stock by 0.4% in the past seven days. All these factors signal that it is better to wait on the sidelines till the dust settles.

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