Pinterest Stock Eyes Worst Day Ever After Earnings Blunder

Pinterest stock is suffering massive post-earnings analyst scrutiny

Managing Editor
Nov 1, 2019 at 9:53 AM
facebook twitter linkedin

Although the social media name reported third-quarter earnings that were above analyst estimates, a lower-than-expected quarterly revenue and a narrower-than-anticipated revised full-year sales forecast has Pinterest Inc (NYSE:PINS) deep in the red this morning. Last seen down 21.7% at $19.69, PINS opened at a fresh record low of $18.81 this morning, and is eyeing its worst daily loss ever. 

So far, no fewer than nine price-target cuts and one downgrade have been handed out by covering analysts. The steepest comes from Zephirin Group, which slashed its price target all the way down to $14 -- a more than 44% downside to last night's close of $25.14. And while Pivotal Research downgraded to "hold" from "buy," D.A. Davidson went against the grain, upgrading to "buy" from "neutral." Coming into today, eight of 15 brokerage firms carried a tepid "hold" recommendation.

Short sellers -- and there are plenty of them -- are likely cheering today's freefall. Short interest increased by 24% in the past two reporting periods to a record high 19.12 million shares. This accounts for a healthy 22% of the stock's total available float, and three times PINS' average daily trading volume.

From a more technical viewpoint, PINS has suffered on the charts since its mid-April public trading debut. Pressure from both the 20-day and 30-day moving averages have sent the stock into a steep deficit since its Aug. 22 all-time peak of $36.83. In fact, the equity has shed around 33% over the past six months.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!