Pinterest (NYSE:PINS) shares are trending higher today after comments from executives at the company during its first investor day boosted investor sentiment. Pinterest expects growth over the next three to five years to be in the mid to high teens. In comparison, it clocked growth in the high single digits last year. Furthermore, company executives expect growth to pick up after a tepid 2022 and 2023.
Adding to this, the adjusted EBITDA margin is also expected to reach a percentage in the low 30s during this period. Pinterest has had to lower its headcount and take steps to boost efficiency after the pandemic-led boom fizzled out. Now, a focus on engaging with retailers seems to be paying off, and its collaboration with Amazon (NASDAQ:AMZN) is a case in point. Pinterest’s Strategy Chief, Martha Welsh, noted that tests indicate that ads sourced from the tie-up with Amazon are proving to be more relevant than current ads.
The company has set aside $1 billion for stock buybacks and expects revenue growth in the third quarter to be at the higher end of a range in the high single digits. Impressively, Pinterest now has about 465 million global monthly active users and is focusing on improving engagement, boosting user monetization, and driving its user base to achieve profitable growth.
What Is the Target Price for Pinterest Stock?
Overall, the Street has a consensus price target of $32 on Pinterest, alongside a Moderate Buy consensus rating. This implies a 22% potential upside in the stock.
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