Latest news with #PINS
Forbes
3 hours ago
- Business
- Forbes
Pinterest: More Downside For PINS Stock?
Pinterest (NYSE:PINS) has recently experienced a 10% decline after its quarterly earnings fell short of expectations. Nevertheless, despite this downturn, we consider the stock to be a worthwhile investment at its current price of approximately $35. The valuation of the stock seems reasonable, and our analysis suggests that there is little cause for worry. We arrived at this conclusion by assessing Pinterest's present valuation in relation to its recent operational performance as well as its current and historical financial health. Our analysis, which addresses critical parameters including Growth, Profitability, Financial Stability, and Downturn Resilience, shows that the company maintains a strong operational performance and financial condition. However, if you are looking for potential gains with reduced volatility compared to holding an individual stock, consider the High-Quality Portfolio, which has significantly outperformed its benchmark— a mix of S&P 500, Russell, and S&P mid-cap index, achieving returns over 91% since its establishment. Additionally, look at – SoundHound AI: More Upside For SOUN Stock? How Does Pinterest's Valuation Compare To The S&P 500? According to what you pay per dollar of sales or profit, PINS stock appears moderate when set against the broader market. How Have Pinterest's Revenues Grown In Recent Years? Pinterest's Revenues have exhibited significant growth in the last few years. How Profitable Is Pinterest? Pinterest's profit margins exceed those of most companies covered in the Trefis universe. Is Pinterest Financially Stable? Pinterest's balance sheet appears to be very robust. How Resilient Is PINS Stock In A Downturn? PINS stock has performed far worse than the benchmark S&P 500 index during recent downturns. As investors hope for a soft landing in the U.S. economy, what could the implications be if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash showcases how key stocks performed during and after the last six market crashes. Putting Everything Together: Implications For PINS Stock In summary, Pinterest's performance across the discussed parameters is as follows: • Growth: Strong • Profitability: Strong • Financial Stability: Very Strong • Downturn Resilience: Very Weak • Overall: Strong The Verdict Overall, Pinterest has exhibited strong performance across essential metrics. The company's current valuation, at 6.8 times trailing revenues, is consistent with its four-year average price-to-sales ratio of 7.3. However, with solid cash flow margins and accelerating revenue growth, the stock holds potential for further appreciation. Pinterest is experiencing robust momentum, with its global monthly active users increasing 11% year-over-year to an all-time high of 578 million. This surge is fueled by AI-driven personalization and strategic partnerships. As this trend progresses, it could warrant a higher valuation multiple for the stock. That said, our assessment may be incorrect, and potential investors should remain cognizant of several risks. Aspects such as tariff-related advertising issues, a slowdown in global ad spending, or a shift in advertiser preferences could adversely affect Pinterest's growth. Furthermore, the company faces escalating competition, and its stock may exhibit considerable volatility during economic downturns. Investors ought to weigh these risks carefully and be ready for the possibility of a significant drop in the stock's value. That said, for patient investors looking at a 3-5 year horizon, Pinterest could represent an appealing investment, particularly with the growth of augmented reality shopping experiences. While PINS stock appears promising, investing in a single stock carries inherent risks. Conversely, the Trefis High Quality (HQ) Portfolio, which holds a selection of 30 stocks, has a history of consistently outperforming its benchmark, which includes all three—the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? As a collective, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; a smoother ride, as demonstrated in HQ Portfolio performance metrics.
Yahoo
2 days ago
- Business
- Yahoo
Pinterest Stock Just Dropped 12% After Earnings. Is It a Red Flag, or a Buying Opportunity?
Key Points Pinterest reported strong numbers for the second quarter, especially on the top line. Monetization of non-U.S. users continues to be a strong point. Tariff-related advertising concerns are weighing on investor confidence. 10 stocks we like better than Pinterest › Pinterest (NYSE: PINS) reported its second-quarter earnings recently, and the stock fell by about 12% the next day. Although top-line revenue is growing faster than expected, the company's profitability was a little lower than analysts had hoped for, and there are some concerns about the effect of new tariffs on ad demand. In other words, there was a lot of good to balance out the bad. So why is the stock falling so much? Is it a buying opportunity for long-term investors, or would it be best to stay away for the time being? Here's a quick rundown of Pinterest's Q2 results, why the stock is down, and whether it could be a good time to buy. Pinterest's second quarter: The good and the bad We'll start with the good. Pinterest reported top-line revenue that grew by 17% year over year and handily surpassed analysts' expectations. Not only that, but the company gave upbeat third-quarter revenue guidance, and the platform added 8 million users for the quarter, nearly twice as many as were projected. There are now 578 million monthly active users worldwide, and there was growth in all three geographical segments Pinterest reports (U.S & Canada, Europe, and Rest of World). The weakness, however, came on the bottom line. Pinterest missed earnings per share (EPS) estimates by two cents, which appears to be the main negative in the earnings report. To be sure, other profitability metrics were quite strong. Free cash flow margin was almost 20%, compared with just 12% in the second quarter of 2024. Monetization of the user base is also progressing nicely, especially outside of the U.S., which is where the bulk of Pinterest users are. Average revenue per user (ARPU) from the platform's 146 million European users grew by 26%. In the crucial Rest of World group, which includes 329 million users, Pinterest generated 44% more than it did a year ago. This remains a massive opportunity, as the average user in this group still generates less than 3% of the revenue that a typical U.S. user brings in. Pinterest has $2.66 billion in cash and marketable securities on its balance sheet, nearly $150 million more than a year ago. The company's outstanding share count has fallen by almost 3% over the past year thanks to buybacks, and Pinterest has financial flexibility to take advantage of future opportunities that arise. Concerns going forward Despite the strong forecast going forward, Pinterest's management expressed concern over the effects of tariffs on ad spending. One example CFO Julia Donnelly cited in the company's earnings call is Asia-based e-commerce retailers hit by the end of the de minimis exemption to tariffs. So, while Pinterest stock took an initial plunge immediately after the earnings release, these comments are what triggered the double-digit decline. Is it a buying opportunity? In full disclosure, Pinterest is already one of my largest investments, so I'm not likely to add shares anytime soon. However, if you believe (as I do) that the tariff effects will be more of a short-lived problem than a permanent drag on ad demand, it could be a good time to take a closer look. I've said many times that some of my favorite opportunities to buy shares of my favorite companies are when companies miss earnings by a penny or two and the stock proceeds to fall by double digits. While Pinterest could certainly be volatile, especially as the initial effect of tariffs plays out, the long-term thesis is still very much intact, and management is doing an excellent job. Should you invest $1,000 in Pinterest right now? Before you buy stock in Pinterest, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pinterest wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt Frankel has positions in Pinterest. The Motley Fool has positions in and recommends Pinterest. The Motley Fool has a disclosure policy. Pinterest Stock Just Dropped 12% After Earnings. Is It a Red Flag, or a Buying Opportunity? was originally published by The Motley Fool Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Globe and Mail
3 days ago
- Business
- Globe and Mail
Pinterest Q2 Earnings Miss Estimates Despite Y/Y Revenue Growth
Pinterest, Inc. PINS reported modest second-quarter 2025 results, wherein the bottom line missed the Zacks Consensus Estimate while revenues beat the same. The San Francisco-based Internet content provider reported revenue growth year over year, driven by strong momentum in all regions. Management's focus on improving shoppability and monetization potential across the platform and the incorporation of advanced AI-integrated tools to support advertisers and retailers led to top-line growth. PINS' Net Income On a GAAP basis, net income was $38.7 million, or 6 cents per share, compared to an income of $8.9 million, or a penny per share, in the prior-year quarter. Top-line growth led to an improvement in net income. Non-GAAP net income was $228.3 million, or 33 cents per share, up from $172.2 million, or 24 cents per share, in the year-ago quarter. The bottom line fell short of the Zacks Consensus Estimate by a penny. PINS' Revenues During the quarter, revenues rose to $998.2 million from $853.6 million in the prior-year quarter, beating the Zacks Consensus Estimate of $975 million. Pinterest witnessed 11% year-over-year growth in global monthly active users (MAUs) to 578 million, which is an all-time record. The company is witnessing healthy momentum in the retail sector, coupled with growing traction in some emerging markets, such as financial services, technology and entertainment are driving growth. The AI-powered Pinterest Performance+ suite has gained strong market traction among advertisers worldwide. Pinterest's effort to bridge the gap between upper-funnel storytelling and inspiration to lower-funnel conversion is improving campaign performance. Focus on personalization through AI recommendation models is driving click-through rates. Initiatives to boost international expansion and open up new monetization opportunities are positive. The United States and Canada generated $745 million in revenues, up 11% year over year. Net sales missed our revenue estimate of $752.7 million. Solid momentum in retail and emerging verticals, including financial services and technology, supported the net sales. Revenues from Europe totaled $191 million, up 34% from $143 million in the year-ago quarter. The top line surpassed our estimate of $162.5 million. Healthy traction in retail boosted the top line. Net sales from the Rest of World rose to $63 million from $38 million recorded in the prior-year quarter, exceeding our revenue estimate of $56.5 million. MAUs from the United States and Canada were 102 million, up 5% year over year. The quarterly figure matches our estimate. The Rest of World registered MAUs of 329 million, up 14% from 288 million in the year-earlier quarter. MAUs from Europe increased to 146 million from 136 million in the year-ago quarter, but missed our estimate of 148.3 million. In the June quarter, the global average revenues per user (ARPU) stood at $1.74 compared with the year-ago quarter's figure of $1.64. ARPU in Europe improved 26% year over year to $1.3, while the United States and Canada rose 6% year over year to $7.29. ARPU from the Rest of World increased 44% year over year to 19 cents. Other Details Adjusted EBITDA was $250.8 million in the second quarter of 2025, up from the prior-year quarter's tally of $188.3 million. Disciplined expense management and operational efficiency led to a 33.5% year-over-year improvement. Total costs and expenses were $1 billion, up from $875.1 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $359.6 million from $312.8 million. PINS' Cash Flow & Liquidity In the second quarter, the company generated $207.7 million of cash from operating activities compared with $106.4 million in the prior-year quarter. As of June 30, 2025, Pinterest had $1.21 billion in cash and cash equivalents and $137.4 million of operating lease liabilities. PINS' Outlook for Q3 For the third quarter of 2025, Pinterest expects revenues in the range of $1.033-$1.053 billion, indicating 15-17% year-over-year growth. Management expects adjusted EBITDA to be in the range of $282-$302 million. Zacks Rank & Stocks to Consider Pinterest currently has a Zacks Rank #3 (Hold). Ubiquiti Inc. UI carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment. Jabil, Inc. JBL currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 9.44%. Jabil's focus on end-market and product diversification is a key catalyst. The company's target of 'no product or product family should be greater than 5% operating income or cash flows in any fiscal year' is commendable. This initiative should position Jabil well on the growth trajectory. Motorola Solutions, Inc. MSI currently carries a Zacks Rank 2. The company delivered an earnings surprise of 6.8% in the trailing four quarters. Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. MSI intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis Report
Business Insider
4 days ago
- Business
- Business Insider
Pinterest CEO: International is a huge opportunity for us
In an interview on CNBC's Mad Money, Bill Ready said 80% of Pinterest's (PINS) users are outside the U.S. It's seeing great revenue growth in Europe. The company is winning with the next generation as 50% of the platform is Gen Z, he noted. Pinterest is leading the way with the responsible use of AI, according to Ready. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Business Insider
6 days ago
- Business
- Business Insider
Pinterest (PINS) Is About to Report Q2 Earnings. Here's What to Expect
Social media platform Pinterest (PINS) is scheduled to announce its second-quarter results after the market closes on Thursday, August 7. PINS stock has rallied about 35% year-to-date, driven by strong performance from peers in the digital ad space, such as Meta Platforms (META), the adoption of artificial intelligence (AI) to enhance ad offerings, and the company's improving performance. Wall Street expects Pinterest to report earnings per share (EPS) of $0.35, reflecting an increase of about 21% compared to the prior-year quarter. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Revenue is projected to rise about 14.2% to $974.93 million. These expectations indicate a resilient performance despite the ongoing macro uncertainties. Analysts' Views Ahead of Pinterest's Q2 Earnings Heading into Q2 results, Guggenheim analyst Michael Morris increased the price target for Pinterest stock to $44 from $39 and maintained a Buy rating. The 5-star analyst remains confident about PINS stock, noting that the company is in the early stages of its monetization opportunity. He highlighted that the two primary near-term growth drivers are the progress on Performance+ (particularly AI-related investments) and expanding strategic partnerships (Magnite (MGNI), Instacart (CART), LTK Influencer Content, Amazon (AMZN) /Google (GOOGL) integrations). Morris expects Q2 revenue growth of 14.4%, which is towards the higher end of management's guidance range of 12% to 15%. The analyst noted that Alphabet's Q2 results and outlook suggest strength in demand for direct response advertising since the first-quarter earnings. Morris expects Pinterest's profitability to continue to increase throughout the year, though at a slowing rate of margin expansion due to rising AI-related investments. Likewise, Benchmark analyst Mark Zgutowicz increased the price target for Pinterest stock to $48 from $45, while maintaining a Buy rating. The 5-star analyst contends that the expectation that Q2 and 2025 revenue and EBITDA will be relatively in line with consensus estimates seems conservative. Zgutowicz likes the setup heading into the Q2 print for multiple reasons, including multi-quarter investments in GPU-enabled innovations. The analyst also noted performance-driven market share gains within the Enterprise business, as new products broaden advertiser prospects to $1 billion-$30 billion of annualized gross merchandise value (GMV). AI Analyst Is Bullish on Pinterest Stock Ahead of Q2 Print Interestingly, TipRanks' AI stock analyst has assigned an Outperform rating to Pinterest stock with a price target of $41, indicating 4.9% upside potential. TipRanks' AI analysis indicated that solid financial performance and favorable earnings call sentiment are the primary drivers of the bullish stance on PINS stock. The AI analysis also noted strong revenue growth, high gross margins, as well as strategic focus on AI advancements and international expansion. Here's What Options Traders Anticipate Ahead of PINS' Q2 Earnings Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that move in either direction in PINS stock in reaction to Q2 results. Is PINS a Good Stock to Buy? Overall, Wall Street has a Strong Buy consensus rating on Pinterest stock based on 24 Buys and four Hold recommendations. The average PINS stock price target of $42.68 indicates 9.2% upside potential from current levels.
