Mar 09, 2020 (Market Realist via COMTEX) -- On March 6, Pinterest /zigman2/quotes/211319641/composite PINS +4.53% stock fell 2.27% and closed at $18.51. Based on the last closing price, the company has a market cap of $10.6 billion. The stock price has fallen 5.08% in the trailing five-day period, while it has fallen 19.6% in the trailing one-month period.
Currently, Pinterest stock is trading 49.7% below its 52-week high of $36.83 on August 22, 2019. The stock is also trading 6.4% above its 52-week low of $17.39 on December 13, 2019. On a YTD (year-to-date) basis, the stock has fallen by 0.7% as of March 6. In comparison, the broader S&P 500 Index has fallen 8.0% YTD.
Analysts' recommendations for Pinterest stock
According to the latest recommendations from 24 brokerage firms surveyed by Reuters, 12 or ~50% of the analysts recommend a "buy," while 12 or ~50% recommend a "hold." None of the analysts tracking the stock recommend a "sell."
Analysts have an average target price of $30.00 on Pinterest. The target price implies a return of 62.1% based on the closing price of $18.51 on March 6. The consensus target price for the stock didn't change from $30.00 in February. The lowest target price estimate is $24, while the highest is $35.00.
Today, a Zephirin Group analyst downgraded Pinterest stock to "sell" from "buy." The analyst decreased its target price on the stock from $30 to $14.
Snap /zigman2/quotes/205087158/composite SNAP -0.10% and Facebook /zigman2/quotes/205064656/composite FB -1.10% have average broker target prices of $20.00 and $245.65, respectively. The figures imply returns of 53.8% and 35.7%, respectively, over the next 12 months.
Financial performance in Q4
Pinterest's net revenue rose 46.4% YoY (year-over-year) to $399.90 million in the fourth quarter of 2019. Wall Street analysts expected revenue of $371.23 million. The company's adjusted EPS was $0.12 in the fourth quarter of 2019, which was better than analysts' consensus expectation of $0.08.
Overall, the company added 70 million pinners or MAUs (monthly active users) in 2019. Among the 70 million MAUs, only 6 million additions were from the US market. The remaining 63 million user additions were in international markets. As of December 31, 2019, Pinterest's MAUs totaled $335 million.
In 2019, Pinterest's international MAUs rose by 35% YoY, while its US MAUs only increased by 8% YoY. However, the social media company generates less revenue in international markets compared to US markets. Pinterest's global average revenue per user was $3.81 in 2019. The company highlighted that US users brought in $12.07 per user in 2019, while international users only brought in $0.54 per user.
According to a CNBC report, "The results show that Pinterest's recent adjustments to the app seem to be paying off. Last quarter, Pinterest said it redesigned the app to make it easier for users to discover new ideas." The report also said, "CEO Ben Silbermann said the company continued to improve the foundation of the Pinterest app in the fourth quarter by strengthening recommendations and the shopping experience, as well as speeding up the performance of the platform. In 2020, Pinterest intends to focus on delivering relevant content, ads and shopping experiences."
Technical indicators for Pinterest stock
On March 6, Pinterest stock was trading 13.5% below its 20-day moving average of $21.39. Meanwhile, the stock was trading 12.7% below its 50-day moving average of $21.20 and 12.0% below its 100-day moving average of $21.04. The stock's 14-day relative strength index score of 32 shows that it's approaching "oversold" territory.
Pinterest has an upper Bollinger Band level of $25.87. The company's middle Bollinger Band level is $21.79, while its lower Bollinger Band level is $17.70. On March 6, the stock closed near its lower Bollinger Band level, which also suggests that the stock is oversold.
Pinterest stock is trending downward in today's trading session. The stock fell by 7.35% at 9:34 AM ET. Read Should You Buy or Sell Pinterest Stock Right Now? to learn more.