For the current fiscal year, Wall Street analysts are expecting Pinterest to generate $3.05 billion in revenue, representing 9% y/y growth. There are red flags here to be wary of:įirst, expectations for Pinterest may already be hot. I remain bearish on Pinterest in 2023, especially after reading into the company's latest results. Profitability is the key eyesore here: though Pinterest is seeing encouraging user trends, costs are rising and eating into profitability, calling into question Pinterest's valuation.
This social media stock, long considered a niche play in an industry largely dominated by Meta Platforms' ( META) Instagram and Facebook, has seen much of its year-to-date gains wiped away since the company reported results in early February. In particular, I think Pinterest ( NYSE: PINS) is in a tough spot.
Year to date, most tech names have still rallied substantially, but the overhang of a tough macro environment plus early indicators that the recession may be longer-lived than we initially expected (including the collapse of Silicon Valley Bank ( SVB )) requires us to be more diligent in the names we retain in our portfolios.
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