Pinterest pops on double dose of optimism from Wall Street
Pinterest reported it hit a record 553 million global active users last month.
Pinterest shares popped more than 5% Monday morning after the visual discovery platform got an upgrade from Guggenheim. Analyst Michael Morris raised the stock’s rating from neutral to buy and slightly hiked its price target to $40. Last month, Pinterest shares surged 20% despite missing Q4 earnings estimates, as it crushed sales forecasts and notched a record 553 million global monthly users. While Pinterest made $1.9 billion in profit in 2024 (its most profitable year ever) the stock is still down nearly 57% below its 2021 highs.
Morris believes the dip “creates an attractive opportunity to invest in the still early-stage global user, monetization, and profit growth” at the company.
He’s not the only analyst feeling optimistic — Bank of America named Pinterest as its top pick in mid-cap internet and e-commerce stocks Monday, citing improving AI capabilities and stronger direct-response product traction. Still, online ad growth tends to track with GDP, and if consumer sentiment weakens, ad budgets could take a hit. Looking ahead, the analysts project global ad industry growth to slow to 11% year over year in 2025, reaching $760 billion.
