What Happened?
Shares of social commerce platform Pinterest (NYSE: PINS) jumped 5% in the morning session after JP Morgan upgraded the stock rating from Neutral to Buy and raised the price target from $35 to $40. The firm cited "progress in adding users and improving monetization."
After the initial pop the shares cooled down to $33.11, up 3.7% from previous close.
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What The Market Is Telling Us
Pinterest’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 25 days ago when the stock gained 5.2% on the news that the company reported strong first quarter 2025 results which beat analysts' revenue and EBITDA expectations. Sales rose 16% as more people used Pinterest to shop and more brands bought ads to reach them.
On the other hand, its EBITDA guidance for next quarter missed. Still, this print had some key positives.
Pinterest is up 8.3% since the beginning of the year, but at $33.11 per share, it is still trading 26.4% below its 52-week high of $44.98 from June 2024. Investors who bought $1,000 worth of Pinterest’s shares 5 years ago would now be looking at an investment worth $1,545.
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