- Morgan Stanley analyst Brian Nowak downgraded Pinterest Inc (NYSE:PINS) to Equal Weight from Overweight with a price target of $30, down from $53. The price target implies an upside of 13.4%.
- Pinterest's user and time spent trends were challenging while it shifted existing time spent toward lower-monetizing creator videos.
- Nowak acknowledged the edge in larger platforms with more engineers, ad salespeople, and existing advertisers like Facebook rebranded Meta Platforms Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google to monetize this format over smaller players like Pinterest.
- Pinterest's Q4 sales of $847 million beat the consensus of $827.16 million. EPS of $0.49 beat the consensus of $0.45.
- Pinterest CFO admitted that Q4 Monthly Active Users declined due to Google's November algorithm updates and competition.
- Price Action: PINS shares closed higher by 3.77% at $26.45 on Monday.
