Image sharing and shopping platform Pinterest, Inc. (NYSE: PINS) recently revealed that it has entered into a definitive agreement to acquire an AI-powered shopping platform, THE YES. The financial terms of the deal, which is likely to close in the second quarter of 2022, have been kept under wraps.
Following the news, shares of the company jumped more than 6% to close at $20.10 in Thursday’s extended trading session.
Pinterest’s move to acquire a notable shopping platform, like THE YES, is expected to boost the company’s shopping experience further.
Notably, THE YES has developed a platform that combines human expertise and machine learning to power a comprehensive algorithm in fashion.
Post the acquisition, the CEO of THE YES, Julie Bornstein, will report to Ben Silbermann, the Co-Founder and CEO of Pinterest.
Management’s Take
The CEO of Pinterest, Ben Silbermann, said, “THE YES team are experts in building an end-to-end shopping experience. They share our vision of making it simple to find the right products that are personalized for you based on your taste and style. We’re very excited about THE YES’s talented team and technology as we build dedicated shopping experiences on Pinterest.”
Stock Rating
On June 2, Wolfe Research analyst Deepak Mathivanan reiterated a Hold rating on the stock. The analyst, however, lowered the price target from $25 to $22, which implies upside potential of 9.8% from current levels.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on six Buys and 16 Holds. PINS’ average price target of $28.40 implies that the stock has upside potential of 41.7% from current levels. Shares have declined 68% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Pinterest’s performance this quarter.
According to the tool, the Pinterest website recorded a 31.06% monthly decline in global visits in April, compared to the same period last year. However, the footfall on the company’s website has increased 6.93% year-to-date, compared to the year-ago period.
Conclusion
Pinterest’s acquisition of a leading AI-powered fashion platform will help the company emerge as a solid player in the online clothing space.
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