Pinterest long positionHello everyone !
This is my first recommendation/analysis. Any constructive critique is welcomed. Sorry for my potential English mistakes.
PINS stock was affected by a correction after it's impressive Q2 2019 earnings report and it's stock jumped (+21% at peak).
The correction is characterized here by this orange down Trendline.
The stock entered in what we call a "trading range" (green rectangle). The probability for it to make a downtrend breakthrough is very low
considering PINS last earnings report, market confidence and increased monetization possibilities (strong ad marketing perspectives) in the future for PINS.
PS : the stock clearly broke the "trading range" rectangle (upwards) while i was writing these lines, which comforts the probability to gain some $ more.
Price target is high on the middle-long term.
Keep the looong :)
Pinterest reports smaller 1Q loss but results drag stockPinterest, fresh off its initial public offering, posted a loss for the first three months of the year that was larger than analysts were expecting, though revenue was slightly stronger. Its revenue forecast, though, was slightly below expectations and its shares slumped in after-hours trading.
The company, which runs a digital pinboard and shopping tool, said Thursday that its net loss was $41.4 million, or 33 cents per share, in the January-March period. Its revenue grew 54% to $202 million from $131 million. The quarter's adjusted loss was 32 cents per share.
Pinterest IPOI like Pinterest as a product, but I don't participate in this IPO.
The main reason is the market doesn't like social networks IPOs:
Twitter, Snapchat.
My expectation is +30-40% in first trade day, maybe this will even hold strong at first quater, but then the financial result with estimates of -1.6 EPS will do the thing, -1.135 billion spending will make it move downwards.
I don't like their lack of users in US... users growth Worldwide is very good, but if they are bots from India and Pakistan, Russia and other countries which pay 0.01 per year and only watch ads.. thats not good for business, only for manipulating User amount data.