Bulletin
Investor Alert

Oct. 21, 2020, 12:57 p.m. EDT

Pinterest stock climbs to a record as Snap’s blowout earnings, BofA upgrade provide a big boost

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Pinterest Inc. (PINS)
  • X
    Snap Inc. (SNAP)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

Tomi Kilgore

Shares of Pinterest Inc. soared toward a record Wednesday, as Snap Inc.’s blowout results enticed BofA Securities analyst Justin Post to turn bullish.

The photo-sharing website’s stock /zigman2/quotes/211319641/composite PINS +3.41% shot up as much as 15% earlier to an all-time intraday high of $52.05, before paring gains to be up 8.5% in active midday trading. The stock is well above Monday’s record close of $45.82.

Trading volume swelled to 34.3 million shares, compared with the full-day average of about 14.7 million shares.

The rally comes as Snap’s stock /zigman2/quotes/205087158/composite SNAP +1.03% rocketed 33.4%, also to a record high, after the social-media company reported a surprise third-quarter adjusted profit and revenue and user growth that crushed expectations.

Don’t miss : Snap soars 30% higher to record $50 billion valuation, brings Twitter and Facebook along for the ride .

BofA’s Post upgraded the stock to buy from neutral, while raising his stock price target to $58 from $45. His new target, which is about 18% above current levels, is higher than the targets of all of the 29 analysts surveyed by FactSet.

“Snap announced 3Q results with revenues significantly above the Street, another sign of a strong online advertising rebound, and suggesting traction for self-serve ad platforms with e-commerce exposure,” Post wrote in a note to clients.

He said he has been bullish on the online ad sector, but he had been hesitant to recommend investors buy Pinterest, given the stock’s valuation and uneven growth.

“However, with ad checks highlighting confidence in Pinterest’s strong user intent and ad platform innovation, (such as automated bidding), we are upgraded to buy,” Post wrote.

The stock soared 163.8% year to date, while Snap shares have run up 132.5% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.24% has gained 6.3%.

/zigman2/quotes/211319641/composite
US : U.S.: NYSE
$ 69.72
+2.30 +3.41%
Volume: 8.46M
Nov. 27, 2020 5:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$41.67 billion
Rev. per Employee
$515,454
loading...
/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 46.03
+0.47 +1.03%
Volume: 7.69M
Nov. 27, 2020 5:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$67.88 billion
Rev. per Employee
$409,309
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,638.35
+8.70 +0.24%
Volume: 1.22B
Nov. 27, 2020 2:07p
loading...

Get news alerts on Pinterest Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.