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Pinterest - AI Stock Analysis

Analysis generated October 19, 2024

Pinterest is a widely recognized name in the social media and visual discovery space. The company offers a platform where users can discover and save creative ideas in the form of pins. Contrary to many social networks focused on user interaction, Pinterest is centered around the idea of discovering inspiration, making it a unique entity in the digital landscape. The company is headquartered in San Francisco and operates globally.

Fundamental Analysis

Revenue for the last quarter was $740 million. This represents a decrease of 24.59% compared to the quarter before it, indicating a need for concern. However, when compared to the same quarter last year, there is a significant increase of 22.80%, suggesting positive year-over-year growth.

The net income for the last quarter stood at $25 million, a decrease of 112.33% compared to the prior quarter, another point of concern. However, compared to the same quarter last year, there is an increase of 88.10%, indicating substantial year-over-year improvement.

EBITDA for the last quarter was $50 million, a decrease of 124.58% from the previous quarter. Nonetheless, it still represents an increase of 79.13% compared to the same quarter last year.

The current P/E ratio is 113.59. This high value could indicate an overvalued stock and a potentially bearish outlook. Additionally, in the last couple of months, several company insiders sold their stock, which is another bearish signal.

Technical Analysis

Today’s stock price is $33.18, reflecting an increase of 8.72% compared to a month ago, indicating a short-term positive trend. Compared to a year ago, the price has increased by 27.81%, suggesting a positive long-term trend. However, the overall trend appears bearish as the current SMA10 is $33.65, lower than the previous SMA10 of $33.72, signaling a potential downward trend in price movement. Additionally, the RSI is at 74, indicating potentially overbought conditions and a bearish outlook.

Alternative Data Analysis

Regarding job postings and employee sentiment, Pinterest has 218 open positions, a stable number over the last few months, suggesting the company is in a stable condition. Employee sentiment remains neutral.

Customer acquisition metrics show a bullish trend with an estimated 1.1 billion visitors to their webpage, a 22% increase over the last couple of months. Moreover, 250,000 users are downloading their mobile apps daily, with no significant change over the past few months.

On the customer engagement front, Pinterest has 3 million followers on their Instagram page, a 3% increase over the last few months. However, their Twitter following remains static at 2.2 million, reflecting stagnant interest.

AltIndex's AI score of 49 for Pinterest is classified as a hold signal.

Conclusion

Based on a comprehensive analysis of fundamental, technical, and alternative data, Pinterest presents a mixed outlook. Although there's robust annual growth in revenue, net income, and EBITDA, short-term declines signify a need for caution. The high P/E ratio is indicative of potential overvaluation. Technically, while some metrics show a positive trend, the SMA10 and high RSI indicate potential bearish conditions.

Alternative data offers a more neutral stance with stable job postings, increasing webpage visitors, and steady app downloads. Social media engagement metrics are also relatively stable, leaning slightly positive.

Given the blend of signals from different analytical perspectives and the AI score of 49, the recommended position for Pinterest stock is to hold. Investors should keep a watchful eye on short-term performance indicators and consider re-evaluating their stance as new data emerges.

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.