Pinterest: Easy Comps Aheads
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Update - Jan. 20
Always wonder about these analyst surveys when most people aren't very interested in surveys. It would be crazy that Pinterest is struggling with advertising after Twitter has lost so many advertisers after the Musk deal.
-Pinterest shares gave up 2% in pre-market trading Friday as MKM Partners analyst Rohit Kulkarni cut his rating on the social-information sharing company in large part due to cautious comments about online advertising.
-Kulkarni lowered his opinion of Pinterest (PINS) to neutral from buy after a survey of advertising agencies suggested "marginally negative" prospects for the company, as oppowng to the likes of Meta's (META) Facebook and Instagram, YouTube (GOOG) and Snap (SNAP). Kulkarni said the survey results imply "a potential market share loss amidst a somewhat weak as [spending] market" in the first half of this year.
Original article published on Dec. 30
- Pinterest faces easy comps next year with limited revenue and user growth in 2022.
- The social commerce sector provides an attractive tailwind for 2023 as the new CEO should start making progress.
- The stock is cheap at 4x '23 EV/S targets while Pinterest has the potential for strong adjusted EBITDA margins.