Pinterest Stock Brushes Off Bull Note Before Earnings

Short interest has surged during the past two reporting periods

by Emma Duncan

Published on Feb 5, 2020 at 10:20 AM

Social media platform Pinterest Inc (NYSE:PINS) is moving lower this morning ,despite seeing an initiation of coverage from Loop Capital of a "buy" rating and $29 price target yesterday evening. The firm even went on to say PINS has "great potential as an advertising and eCommerce platform," and that it could be "very profitable." At last check, PINS was down 2.2% at to trade at $21.95.

Pinterest stock has been struggling to build off its recent December-January upswing, with overhead resistance emerging from the $23 level in recent weeks. Added support at the 20-day moving average has been of value to the shares in 2020, backing the equity's now 18% year-to-date gain.

Heading into today analysts were split on the equity, with half sporting a "buy" or better rating, and remaining carrying a "hold." No "sells" are on the books, however, suggesting analyst outlook for the media name is relatively optimistic. 

Short interest has added a notable 27.3% during the past two reporting periods, and now accounts for 18.7% of the stock's total available float. At PINS' average pace of daily trading, it would take shorts under two days to buy back their bearish bets.

Looking ahead, Pinterest is slated to report fourth-quarter earnings and 2019's fiscal full-year results after the close tomorrow, Feb. 6. While the equity has only put out three reports since going public early last year, the stock has averaged a post-earnings swing of 16.4%, regardless of direction. This time around, the options market expects a slightly larger, 19% move for Friday's trading. 

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