Pinterest (NYSE:PINS) shares jumped Tuesday, as the stock was upgraded to “overweight” from “neutral” at Piper Sandler, which believes the image-sharing website operator can expand its profit margins.
The social media company had become a favorite during the pandemic and suffered after the reopening. But PINS stock looks like a good bet at the lower levels. Despite the dip, the stock is performing much better than its rivals. The management is highly optimistic about the company’s future and expects to generate a revenue of $3.24 million in 2023, 15% higher than in 2022.
The company has suffered as pandemic worries waned but it still remains a go-to for users to share ideas through social media and it is an ideal place for handling creative projects. The best thing about Pinterest is its loyal customer base which is attracting brands and advertisements. It recently entered into an agreement with Elliott Investment Management which is a positive sign for shareholders since a member of Elliott will join the Board of Directors at Pinterest and attempt to improve its social media business.
CEO Bill Ready had this to say about the appointment.
‘We’d like to welcome Marc to the Pinterest Board following our collaborative dialogue with Marc, Jesse Cohn, and Elliott over the past few months. We appreciate the perspective the team brings, as well as their commitment to our Company and mission.”
PINS stock is up 34% over the past six months. The shares have zoomed $2.26, or 9.6%, to $25.87 Tuesday morning.
