Pinterest Trading forecasts and signals

Pinterest shares are trading 20% below the marks of the beginning of the year. In 2020, securities rose in price by more than 260% against the background of an increase in Internet activity, which led to an acceleration in the growth of the number of users of the platform. Investors bought PINS shares, because they believed that the social network on the one hand is ideal for advertising products, and on the other – attracts a paying audience. Being 40% below the maximum marks, PINS look much more attractive than at the beginning of the year, but they still seem to be overbought. Wall Street expects revenue growth next year by 31%, to $3.43 billion. These are pretty good figures, but they do not go into any comparison with the results in 2020. The main reason for the pessimistic mood is the decline in the number of American users, who, as is known, bring the greatest income. Compared to last year, there were 5% fewer of them – 91 million. If we compare it with the results for the first quarter of 2021, the current situation will look even more sad, because 91 million users from the United States visited the platform every month. They bring in 14 times more money: if in the second quarter there was $5.08 ARPU for every American, then $0.36 for users from other countries. Overall, they account for 78% of Pinterest's total revenue. During the reporting period, the number of users worldwide increased by 9%, which is significantly lower than the results for the last four quarters (above 30%). At this rate, it is unlikely that it will be possible to achieve the revenue growth projected on Wall Street by ...