![]() But that’s exactly what happened to Pinterest on July 29. Usually, companies that record overall revenue growth of 125% on a year-over-year basis don’t get dinged. earlier in the pandemic.įor the contrarian investor, this all points to opportunity because the report was very strong otherwise. The company received a big boost in MAUs due to lockdowns across the U.S. ![]() Pinterest CEO Ben Silbermann explained that the decline was attributable to the pandemic’s easing. The report itself states a 5% decline, while a Barron’s report later clarified the discrepancy adding that the company further disclosed declines in the U.S. So, there was a relatively sharp decline in MAUs and some confusion around the reported number. The evolution of the COVID-19 pandemic and related restrictions remain unknown, and we are not providing guidance on Q3 2021 MAUs given our lack of visibility into certain key drivers of engagement. MAUs have declined approximately 7% and global MAUs have grown approximately 5% year over year*. It was found in the second paragraph of the company’s guidance section of the report.Įngagement headwinds on Pinterest have continued in July. In what looked like an otherwise stellar earnings report, there was a single issue. So, what caused the market to react so negatively a few weeks ago? The bull thesis here is as straightforward as they come: Buy the dip before the broader market realizes the degree of the overreaction that occurred on July 29. 7 Dividend Stocks to Avoid Until They Start to Shape Up Again. ![]() And those target prices range as high as $100. That indicates greater than 28% upside right now. The average stock price target for Pinterest shares is currently $72.09. PINS stock is still trading sideways almost two weeks after the news, so there’s still opportunity to get on board with that upside. However, I’d first like to note that there is clear upside price appreciation at present. I’ll get to why I believe that was an overreaction on behalf of the market in a moment. Shares plunged from $72 per share to under $58 in a matter of 24 hours. On July 29, Pinterest released its Q2 earnings to much consternation on the part of Wall Street. These figures strongly suggest that now is a great time to get on board with an investment in Pinterest shares. ![]()
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