The company said it expects to increase its dividend this year from $1.64 per share (yield of 4.9%) to $1.70. Fertilizer maker Mosaic missed both profit and revenue estimates. The company said it expects second-quarter pricing for its phosphate products to be $140 to $160 per metric ton higher than in the first quarter and potash prices to be $40 to $60.
The real jaw-dropper in the report was a year-over-year and sequential decline in U.S. monthly active users. A lot of people really did keep the Pinterest app closed when it came time to head outside again. A potential rebound to $50 or where the stock was trading three months ago would make the stock a very attractive investment proposition, but I don’t think this is very likely. PINS’ valuations have de-rated because of slower revenue growth expectations, and this seems quite fair which justifies my Hold rating.
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PINS’ stock price could see a minor rebound as it experiences accelerating revenue growth in 2H 2022, but returning to the $50 level might be very challenging. The Wall Street analysts anticipate that PINS’ sales growth will continue to slow from +20.0% in Q to +18.7% in Q and +14.6% in Q as per S&P Capital IQ data. In my opinion, I think Pinterest’s stock price might see a small rebound or go up slightly in the next one year. This is because Pinterest should witness an acceleration of its revenue growth again in the second half of 2022, given a more favorable base for comparison. For the first quarter, analysts are expecting revenue of $18.36 billion, which would be up 15% sequentially and nearly 74% higher year over year. Adjusted earnings per share are expected to come in at $3.22, up 41.7% sequentially and 367% higher year over year.
Even with the recent surge in COVID-19 cases across the country, there’s the growing consensus that we’re not going back inside our homes the way we did last year. And the same can be said about the stocks that grew to represent that phase of the pandemic’s investing opportunities. Pipeline operator Williams beat estimates on both the top and bottom lines.
Diamondback Energy also beat top-line and bottom-line consensus estimates. There are silver linings in all of these sell-offs, and this isn’t even addressing the lower price points for potential investors. Peloton’s cheaper bikes will help expand its base of high-margin subscriptions.
Why Is Pinterest Stock Dropping?
I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Pinterest’s shares are down by -58.7% since late-October 2021, as Work-From-Home or WFH tailwinds eased. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Average revenue per user at Pinterest has more than doubled in the U.S. over the past year. The number of large Zoom customers has also more than doubled over the past year. In short, they continue to be growth stocks by any definition. Peloton’s fiscal fourth-quarter report last week was a mess. The company behind the high-end stationary bikes and treadmills fell short of Wall Street’s profit targets.
Alternatively, Pinterest’s actual revenue and EBITDA for FY 2022 would have to beat the sell-side forecasts by a huge margin. After markets closed Monday, Devon Energy reported quarterly results that beat on both the top and bottom lines. The oil and gas producer did not indicate that it planned to increase production or capital spending.
Why Early Pandemic Performers Like Peloton, Zoom And Pinterest Are Stumbling
A surprisingly large price cut on its signature bike is also resulting in weak sales and profit guidance heading into the new fiscal year. Federal subpoenas related to treadmill injuries were the why is pinterest stock down today cherry on top of this melting sundae. I focus my attention on Pinterest’s financial outlook in the subsequent section of this article to assess if PINS’ stock price is able to rebound to $50.
- Pinterest’s shares are down by -58.7% since late-October 2021, as Work-From-Home or WFH tailwinds eased.
- Marathon Petroleum beat top-line and bottom-line estimates, and shares traded up 2.7%.
- I assign a Hold investment rating to Pinterest, as its current valuation multiples appear to be aligned with the company’s financial outlook.
- In my opinion, I think Pinterest’s stock price might see a small rebound or go up slightly in the next one year.
- PINS’ severe share price correction in the past couple of months is no surprise, if one looks at the company’s revenue and monthly active users trend highlighted in its Q earnings presentation slides.
I assign a Hold investment rating to Pinterest, as its current valuation multiples appear to be aligned with the company’s financial outlook. Since late September, crude oil prices have risen by nearly 65%. Because Conoco is not saddled with refining or marketing divisions, the price of crude pushes its share price up even faster than either Exxon’s (up 59.3% over the past year) or Chevron’s (up 62.5%). PINS would be a very attractive investment candidate, if its share price could almost double from current levels to reach $50.
Is Pins Stock A Buy, Sell, Or Hold?
The stock opened 15% lower on Tuesday after a poorly received quarterly update. A 54% year-over-year increase in revenue exceeded expectations, but investors were spoiled by bigger blowouts in the five previous pandemic-era reports. Zoom kept its “beat and raise” streak going this week, but the increase in revenue for the full fiscal year is essentially the amount of the fiscal second quarter’s beat. Put another way, it’s not a raise in guidance for the second half of the fiscal year. Pinterest came undone in late July when the stock plunged 18% the day after delivering disappointing financial results.
Last year was a hard act to follow for all three of the 2020 winners, but investors weren’t expecting momentum to lose its footing as badly as we’ve seen this summer. Paramount Global beat the consensus earnings estimate but missed on revenue. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. They just revealed what they believe are the ten best stocks for investors to buy right now… That’s right – they think these 10 stocks are even better buys. The three fast-growing companies were obvious winners during the early months of the pandemic.
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PINS’ severe share price correction in the past couple of months is no surprise, if one looks at the company’s revenue and monthly active users trend highlighted in its Q earnings presentation slides. Pinterest has witnessed a substantial slowdown in its revenue growth and monthly active user growth in the second half of last year. https://xcritical.com/ PINS’ YoY top line expansion moderated from +125% in the second quarter of 2021 to +43% and +20% for Q and Q4 2021, respectively. Similarly, Pinterest’s monthly active user growth slowed from +9% YoY in Q to +1% YoY in Q3 2021, and the company even saw a -6% YoY decline in monthly active users for the most recent quarter.
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If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now. Here is a look at four more companies set to report results Wednesday or Thursday. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.
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But this would translate into rather rich valuation multiples. After markets close Tuesday, Airbnb, AMD and Livent will report quarterly results. We also have previewed expectations for Albemarle, APA, Barrick Gold and Cameco. Marathon Petroleum beat top-line and bottom-line estimates, and shares traded up 2.7%. The refiner did not raise its buyback spending or its dividend. Gyms, restaurants, and real-world gatherings are now the new normal.
Rick Munarriz owns shares of Peloton Interactive, Pinterest, and Zoom Video Communications. The Motley Fool owns shares of and recommends Peloton Interactive, Pinterest, and Zoom Video Communications. Expectations might need to be reset, and all three companies will have a lot to prove when they report again in the fall. However, with the three market darlings of 2020 now trading between 38% and 51% of their highs, one can argue that the bar is going to be lower next time around. Peloton, Pinterest, and Zoom all tumbled after posting their latest quarterly results.
For the full 2022 fiscal year, Conoco is expected to report EPS of $13.00, up 116.3%, on sales of $69.22 billion, up 43.2%. Of the 27 brokerages covering the stock, 23 have ratings of Buy or Strong Buy. At a recent price of around $96.90 a share, the upside potential based on a median price target of $124.50 is about 28.5%. At the high price target of $160, the upside potential is 65.1%. There is no substantial mismatch between the stock’s valuations and the company’s financial outlook to support a Buy or Sell rating. While I am of the view that Pinterest’s shares could rebound from current levels, I am much less certain if PINS’ stock price can return to $50 or higher which I discuss in the next section.