Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Pinterest shares slump as growth warning rattles investors

Stock MarketsJul 30, 2021 15:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Pinterest app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Shares of Pinterest (NYSE:PINS) Inc fell over 18% on Friday to its lowest in over a year, after the company warned of slowing user growth in the United States, its largest market.

At least 14 brokerages cut their price target on the stock, which fell to $58.75 in early trading. If the losses hold, about $8.5 billion would be swiped off its market capitalization which currently stands at about $37.4 billion.

J.P.Morgan made the most aggressive cut and slashed its target by $27 to $68, pushing it well below the current median price target of $77, citing lower-than-expected user additions in the latest reported quarter and disappointing third-quarter outlook.

The brokerage also cut its rating on the stock to "neutral" from "overweight".

Overall monthly active users (MAUs), a widely watched metric, rose by only 9% and missed analysts' expectations in the second quarter. It had risen 30% in the prior quarter.

The company also said that user growth in the United States was decelerating as people who used the platform for crafts and DIY projects during the height of the pandemic step out more as curbs ease.

"This performance suggests lockdown benefits were more transitory than anticipated, while an apparent growing pivot towards the 'creator economy' does raise concern regarding structural engagement trends," James Cordwell, analyst at Atlantic Equities said in a post-earnings note.

Of 30 analysts covering Pinterest, 17 rate the stock "buy" or higher, 12 "hold" and one recommends "sell".

Pinterest shares, which were the biggest losers among NYSE-listed stocks pre-market, have fallen about 9.2% so far this year compared with a 18% rise in the broader S&P 500 index.

Pinterest shares slump as growth warning rattles investors
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email