Is Pinterest stock a buy? (August, 2024)

Its Q2 results have come and gone and Roth MKM analyst Rohit Kulkarni remains on the fence when it comes to Pinterest (Pinterest Stock Quote, Chart, News, Analysts, Financials NYSE:PINS).

On July 20, PINS reported its second quarter 2024 results. The company posted Adjusted EBITDA of 179.9-million on revenue of $853.7-million, a topline that was up 21% year-over-year.

“We had another impressive quarter, reporting a 21% increase in revenue and 12% growth in monthly active users globally,” CEO Bill Ready said. “Our monetization efforts are paying off. Advertisers are seeing improved performance across key objectives on Pinterest – from brand awareness to conversion – as we continue to roll out AI-powered products and experiences. As a result, we’re gaining share of advertising budgets with some of the world’s largest brands. I’m proud of our pace of innovation as we execute against the opportunity ahead.”

The analyst summarized the quarterly results.

“PINS shares were down -12% as of 8pm ET as the company reported a small 2Q beat earnings result and provided 3Q revenue outlook below expectations,” he wrote. “Mgmt. continued to sound upbeat about growing traction with bottom-of-funnel ad campaigns, recent launch of AI-driven ad-tech, and focus on lowering friction for smaller advertisers.”

In a research update to clients July 31, Kulkarni maintained his “Neutral” rating on PINS while lowering his price target on the stock from $40.00 to $39.00.

The analyst thinks PINS will post EBITDA of $937.0-million on revenue of $3.65-billion in fiscal 2024. He expects those numbers will improve to EBITDA of $1.16-billion on revenue of $4.26-billion in fiscal 2025.