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Posted by
Two Blokes Apr 20 -
Filed in
Stock
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6 views
Despite a 15% stock decline, I maintain a "buy" rating for Pinterest, as the company's long-term growth story is intact, driven by growing user engagement and monetization from its targeted AI investments. Its Q4 FY24 showed strong revenue and MAUs reaching an all-time high, but investor confidence was hit by declining ad pricing and rising costs, especially at a time when revenue is expected to slow down. The management expects Q1 revenues to grow at a slower rate of 13-15% YoY, with a sizable sequential drop in margins. Plus, amid the tariff uncertainty, the stock's forward estimates have been slashed.
