Pinterest’s Q2 Revenue Growth Falls Below Expectations Amid Pullback in Advertising Spending

Pinterest Inc.

Pinterest Inc. News:

Pinterest Inc., the image-sharing platform, announced on Thursday that it expects its second-quarter revenue growth to be below Wall Street estimates. This announcement comes as the company faces a pullback in advertising spending. As a result, Pinterest’s shares fell in after-hours trading.

The CEO of Pinterest, Ben Silbermann, stated that the company is investing in next-generation AI to improve recommendations and ads on the platform. This is a crucial strategy to attract advertisers and improve user engagement. The company also reported that global monthly active users (MAUs) grew by 7% to 463 million, which is above the estimated 454.03 million.

In the first quarter of 2023, Pinterest’s revenue increased by 5% to $602.58 million. This figure is higher than the average analyst expectations of $592.99 million. However, the company’s fourth-quarter revenue growth was only 4%.

Pinterest has been facing challenges in its advertising business due to the COVID-19 pandemic. Many advertisers cut their budgets and shifted their spending to other platforms. However, Pinterest has been taking steps to address these challenges by improving its ad offerings and targeting capabilities. The company has also been focusing on diversifying its revenue streams by offering new products, such as shopping features.

Analysts Coverage Change:

  • Rosenblatt Securities (RANK #58) maintains a “Neutral” rating for Pinterest and raises its target price to $27 from $26.
  • Sanford C. Bernstein & Co. (RANK #57) maintains a “Market Perform” rating and lowers its target price to $23 from $28.
  • RBC (RANK #3) lowers its target price for Pinterest (PINS:NYE) to $28 from $30 and maintains the “Sector Perform” rating.
  • Piper Jaffray Companies (RANK #16) maintains the “Overweight” rating for Pinterest and lowers its target price to $31 from $32.
  • UBS (RANK #8) lowers its target price to $34 from $35.

PINS Ratings by Stock Target Advisor

Pinterest Inc Stock Forecast:

Based on the Pinterest Inc stock forecast from 22 analysts, the average target price for Pinterest Inc over the next 12 months is USD 27.05, with an average analyst rating of Buy. Stock Target Advisor’s analysis shows a Slightly Bullish outlook for the stock, based on 6 positive signals and 5 negative signals. As of the last closing, Pinterest Inc’s stock price was USD 27.27, which is a -0.94% change over the past week, a -2.85% change over the past month, and a +46.06% change over the last year.

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