Important note

This AI stock analysis for Pinterest is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Pinterest - AI Stock Analysis

Analysis generated January 15, 2025

Pinterest (NYSE: PINS) is a visual discovery engine that operates in the social media space. The platform is used by individuals to find inspiration for various activities such as recipes, home decor, and fashion. Users can pin images and links to their personal boards and share them with others. Pinterest makes its revenue primarily from advertising, offering marketers the ability to present their products to users based on their interests and activity on the platform.

Fundamental Analysis

Pinterest reported revenue of $898 million in the last quarter, reflecting a 21.40% increase from the previous quarter. This indicates a robust growth trajectory. Compared to the same quarter last year, revenue has surged by 26.88%, underlining Pinterest's capacity for positive year-over-year growth.

Net income for the last quarter stood at $31 million, an astonishing 223.15% increase compared to the previous quarter. When compared year-over-year, the net income has increased by 187.45%, revealing strong profitability trends.

EBITDA was reported at $500,000, with a 99.00% rise from the prior quarter and a year-over-year increase of 99.32%. This indicates the company's improved operational efficiency.

However, the current Price-to-Earnings (P/E) ratio is 95.03, which is relatively high. This could mean that the stock might be overvalued, and it potentially signals a bearish outlook for cautious investors. Additionally, insider selling has been observed recently, which could be a bearish signal.

Technical Analysis

The current stock price of Pinterest is $31.04, representing a 1.27% increase from a month ago, suggesting a positive short-term trend. However, over the past year, the stock has declined by 15.58%, which may concern long-term investors.

The trend remains bullish, as the current Simple Moving Average (SMA10) is 30.92, slightly higher than the previous SMA10 of 30.91, hinting at a potential upward price movement.

The Relative Strength Index (RSI) is at 69, which is in neutral territory, indicating that the stock is neither overbought nor oversold at present.

Alternative Data Analysis

Looking at job postings and employee sentiment, Pinterest has 119 open positions currently listed, a reduction of 45% over the past few months. This could suggest the company is trying to cut costs or improve margins, which might not be a good sign for growth.

The business outlook among Pinterest employees is neutral, indicating neither high optimism nor pessimism about future prospects.

Customer acquisition appears positive, with Pinterest receiving an estimated 1.29 billion visitors to their webpage, up 17% in the past couple of months, and approximately 270,000 daily downloads of their mobile apps, up 6%. These are bullish indicators.

Customer engagement seems stable, with 3 million followers on Instagram, showing no meaningful change recently. Pinterest's Twitter page has 2.2 million followers, down by 1%, suggesting a slight drop in interest.

AltIndex's AI score for Pinterest stands at 63, which is a buy signal. This AI score combines various fundamental, technical, and alternative data analysis to provide an overall recommendation.

Conclusion and Recommendation

Based on the thorough analysis of Pinterest's financials, technical indicators, and alternative data, a mixed outlook emerges. The strong revenue growth, net income, and EBITDA figures are positive indicators of the company's financial health and operational efficiency. The robust bull trend in short-term price movements is promising. However, the high P/E ratio and insider selling suggest caution.

From an alternative data perspective, while customer acquisition metrics are positive, the decline in job postings and Twitter followership adds a note of concern.

Given these mixed signals, it would be reasonable to cautiously incorporate Pinterest into a diversified portfolio, keeping an eye on the mentioned risk factors and potentially overvalued stock price.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.