Pinterest isn’t yet profitable, and this has become a sticking point among some investors. Pinterest is an intriguing social media play to consider right now. It’s a stock that has declined significantly of late, following the company’s recently-released earnings.

It’s important for investors to keep an informed view of current market and economic conditions. Analysis of the current market drivers in historical context provides a clear why is pinterest stock down today picture of what’s going on right now — and when it might change in the future. Keep this information in mind as you manage your investment portfolio for long-term growth.

why is pinterest stock down today

The Treasury market also saw a dramatic reversal of Wednesday’s rally. The 10-year Treasury yield, which moves opposite of price,surged back above 3%on Thursday and hit its highest level since 2018. Rising rates can put pressure on growth-oriented tech stocks, as they make far-off earnings less attractive to investors. The stock market hit valuation levels that were only sustainable with support from spectacular corporate fundamentals. It was never realistic to expect huge growth figures indefinitely. Those sorts of results are no longer available, and 7% corporate earnings growth is being accompanied by a market correction.

Some Wall Street strategists had suggested markets could see a relief rally after the rate increase. After Powell’s comments, investors seemed at ease about the central bank’s ability to slow inflation without triggering a recession. These factors will ultimately drive the company’s pricing power over the long-term in terms of advertising revenues and profitability. Rising interest rates and concerns about a looming recession are causing investors to pull capital from the market.

TipRanks is a comprehensive investing tool that allows private investors and day traders to see the measured performance of anyone who provides financial advice. Accordingly, staying the course with this stock and buying on dips appears to be a winning long-term strategy for those interested in PINS stock. It’s easy to make a snap decision on the basis of one quarter of results. However, taken in context, Pinterest’s overall numbers look quite good.

Top Reasons To Buy And Hold Pinterest For A Rebound

Indeed, it appears many of the bearish factors that investors have been pricing in with this stock, are starting to lose their hold with investors. Concerns about rising interest rates, coupled with economic reopening fears, have driven additional volatility in social media plays of late. Indeed, Pinterest has seen these factors amplify existing concerns about the company’s rate of user growth. It’s always tough to see wealth eroded by tumbling stocks, but this is actually welcome news for some people. Plenty of investors have been frustrated by irrational valuations over the past two years, and they’ve struggled to find good places to deploy capital. Despite a fairly dramatic move back to reality, the evidence doesn’t indicate that a turnaround is imminent.

  • Moving deeper into its shift from social sharing and lifestyle app to a product discovery platform, Pinterest is putting commerce at the center of 2022 growth plans.
  • Pinterest on Monday launched a new app aimed at making it easier for creators to live stream to its platform.
  • It’s important for investors to keep an informed view of current market and economic conditions.
  • Shopify fell more than 17% after missing estimates on the top and bottom lines.
  • Now is the time to take a long-term perspective, while also using the bear market as a learning experience.

Here’s why investors might want to keep an eye on fuboTV’s financials. There is a lot of volatility out there, but Warren Buffett’s company is beating the market. In economic data, weekly jobless claims came in slightly higher than expected and labor productivity dropped 7.5% in the first quarter for itsfastest decline since 1947. Etsy and eBay dropped 15% and 8%, respectively, after issuing weaker-than-expected revenue guidance. Shopify fell more than 17% after missing estimates on the top and bottom lines. “If you go up 3% and then you give up half a percent the next day, that’s pretty normal stuff.

E-commerce stocks were a key source of weakness on Thursday following some disappointing quarterly reports. Still, the Fed remains open to the prospect of taking rates above neutral to rein in inflation, Zachary Hill, head of portfolio strategy at Horizon Investments, noted. Stocks fell sharply on Thursday, erasing the gains seen in the previous session after the Federal Reserve raised rates by half a point. Pinterest is the 14th largest social media network in the world and has a platform designed to inspire, engage and enable a visual shopping experience. According to 42 analysts, the average rating for PINS stock is “Buy.” The 12-month stock price forecast is 38.73, which is an increase of 70.88% from the latest price.

Wall Street analysts who have pored over Pinterest’s numbers seem to think that the stock is worth about $85 per share. As for price targets, the average analyst price target is $85.89. Analyst price targets range from a low of $65.00 per share to a high of $102.00 per share. Every growth stock needs to be profitable at some point, and investors seem to have priced in profitability sooner than Pinterest can provide. Pinterest reported revenue growth of 78% this past quarter, on a year-over-year basis.

Pinterest reported better-than-expected Q earnings on April 27 after the close. Investing in the right beaten-down stocks could supercharge your portfolio. According to TipRanks’ analyst rating consensus, PINS stock comes in as a Moderate Buy. Out of 20 analyst ratings, there are 12 Buy recommendations and 8 Hold recommendations. We’d love to hear eyewitness accounts, the history behind an article.

Market Check April 28: Tesla Lags, Meta Jumps, Boeing Declines, Pinterest Pops

As long-term investors, particularly in the social technology space, valuing a company on a backwards-looking basis can be a dangerous feat. Such outlooks would not have served early investors in Facebook well. Pinterest’s share price has declined from around $90 per share earlier this year to around $55 per share in mid-May. Since then, shares of PINS stock have recovered some of their losses, now trading around $69 per share. Pinterest on Monday launched a new app aimed at making it easier for creators to live stream to its platform. The new Pinterest TV Studio app for iOS and Android will allow select creators to go live on…

why is pinterest stock down today

Commentary about outlook for the rest of the year by CEOs isn’t great, either. Earnings guidance has been slightly negative overall, reflecting rising pessimism among corporate leadership. Investors, analysts, and executives all share concerns that the combination of inflation and rising interest rates is likely to hurt consumption and overall business activity. Investors are hoping for a stock market recovery in May after a disastrous April, but more bad news might be on the horizon.

Adjusted EBITDA grew to $84 million, handily beating expectations of $57 million for the quarter. Now is the time to take a long-term perspective, while also using the bear market as a learning experience. Whether a buyer or seller in today’s market, here are some things you should know about all-cash offers.

Down 75% From Its High, 3 Reasons Why This Growth Stock Is Worth Buying Today

Stocks are getting cheaper relative to fundamentals as a result. That’s still above the all-time average, but it’s below the five-year average, and it’s way below the level of one year ago, when the forward P/E was 21. There’s plenty of opportunities to make money even in a challenging economy with rising interest rates, but PINS stock isn’t one of them. The post Pinterest Is a Good Company in an Unfortunate Situation… As with many long-term social media plays, EPS growth can take a long time.

why is pinterest stock down today

For those who believe in Pinterest’s management team, patience with this stock is likely to pay off. Investors need to remember that the pandemic essentially pulled forward growth that likely would have taken place both this quarter and in the future. Pinterest’s overall outlook remains solid, and there should be little concern with these numbers right now.

Reasons Pinterest Won’t Attract A Buyout Like Twitter

It’s almost impossible to predict exactly where the bottom of a market cycle will hit, and there usually have to be clear global economic growth catalysts to reinstate a bull market. Even after valuations come back to earth, stocks can have a long way down from there. Risk appetite tends to swing like a pendulum, propelling major stock indexes to unsustainable highs and lows, but the upward trend has been a constant across long enough time horizons. Still, it’s important to monitor macroeconomic conditions to optimize long-term returns.

why is pinterest stock down today

Don’t become an extreme contrarian and load up on volatile growth stocks just because the market is getting cheaper. That’s a good way to incur https://xcritical.com/ even bigger losses than everyone else. Stick to your long-term allocation strategy, and make subtle changes to volatility as conditions permit.

Pinterest Makes Itself More Shoppable As Platform Positions Commerce To Pick Up Ad Slack

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Pinterest Faces Tough Times Ahead Despite What The Company Says

Those gains had all been erased before noon in New York on Thursday. Investors were relieved, and the stock surged on the day following the announcement. Given such an outsized move for such a small miss, let’s take a look at the company’s other numbers for context. Let’s take a look at what Pinterest reported, and why investors may still want to get into PINS stock at around this level.

Pinterest reported monthly active users of 478 million this past quarter. This number narrowly missed analyst expectations of 480.5 million by approximately one-half of one percent. Here are a few tips to protect your money when using Zelle or any other P2P payment app, plus steps to take if you experience a scam.

Pinterest Pins Beats Q1 Earnings Estimates On Solid Revenues

Most companies are still exceeding expectations, but there’s a clear slowdown in growth that’s impacting the stock market. The blended average earnings growth rate for the S&P 500 is around 7% so far, which is the slowest rate of expansion in nearly two years. It’s a sign that economic productivity is finally normalizing from the pandemic disruption. If the market swings below historical valuation averages, it’s suddenly a great buying opportunity for long-term growth. I expect value stocks to continue outperforming growth stocks in May, but a portfolio readjustment is officially on my radar for future months.

Pinterest is likely to do everything it can to accelerate MAU growth. Indeed, this may result in EPS taking a back seat to top line performance for some time. However, from a growth perspective, it appears investors will need to put up with EPS losses for a bit longer.

To Tame Inflation, Fed Raises Key Interest Rate

The second half of earnings season won’t be a lifeline for the market in May, though individual stocks could get bumps from bullish reports. On Wednesday, the Fed increased its benchmark interest rate by 50 basis points, as expected, and said it would begin reducing its balance sheet in June. However, Fed Chair Jerome Powell said during his news conference that the central bank is “not actively considering” a larger 75 basis point rate hike, which appeared to spark a rally. Moving deeper into its shift from social sharing and lifestyle app to a product discovery platform, Pinterest is putting commerce at the center of 2022 growth plans. Macroeconomic factors are working against Pinterest, causing revenue growth to decelerate.

The image-based social media company posted sequential growth in global monthly active users for the first time in a year. Long-term investors may see the company’s results as relatively strong. The bar is being raised higher each and every quarter by analysts, and PINS appears to need to innovate to capture more eyeballs. The market is right in the thick of earnings season again, with about half of the S&P 500 left to report first-quarter results. Earnings were better than expected and strong overall in the fourth quarter, and those positive surprises helped to offset downward pressure on stocks.