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Pinterest Stock Surge: Here’s Why It Might Continue

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
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Pinterest Inc. has experienced an impressive 18.32 percent surge in its stock price on Thursday, largely fueled by positive speculation surrounding its potential strategic initiatives and strong user engagement metrics.

What’s Happening With Pinterest?

  • Monness Crespi has upgraded Pinterest to a “Buy,” setting an optimistic $40 price target. The upgrade reflects confidence in the company’s strategic initiatives and potential growth.

Candlestick Chart

Live Update At 17:21:07 EST: On Thursday, February 06, 2025 Pinterest Inc. stock [NYSE: PINS] is trending up by 18.32%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • With the TikTok U.S. ban looming, users searching for visual content might flock to Pinterest, creating an opportunity for increased user growth and engagement.

  • President-elect Donald Trump has plans to extend the TikTok prohibition, aiming for a national security-driven restructuring. This may benefit rival platforms like Pinterest.

Pinterest’s Recent Performance

Many traders face the challenge of knowing when to cut their losses and when to push for more gains. It takes discipline and a strategic mindset to navigate the volatile markets effectively. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.” This philosophy encourages traders to prioritize not losing money over taking unnecessary risks that could lead to bigger losses. Understanding and applying this principle can significantly improve a trader’s long-term success by helping them avoid detrimental situations.

To start with, let’s take a quick look at how Pinterest has been performing. On Feb 6, 2025, Pinterest Inc. will release its fourth quarter and full year 2024 financial results. Investors are eagerly waiting as this announcement could further influence the stock price if the results meet or exceed expectations.

Recently, Pinterest’s stock saw a noticeable jump to a close of $33.59. From a chart perspective, the shares have been consistently testing levels near the $33 mark. An observer might notice the stabilizing pattern, indicating investor interest and market stability during volatile times.

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According to key financial ratios, Pinterest boasts an impressive gross margin of 78.9%, showcasing its efficiency in managing production costs against revenue. This efficiency lets it maintain a positive profit margin of 6.21%. However, it’s worth noting that challenges exist in net profitability, as evidenced by a pretax profit margin of only 0.5%.

Pinterest and the TikTok Ban: A Potential Game-Changer

As the U.S. takes a hard stance against TikTok, Pinterest stands to benefit big time. Over the years, Pinterest has carved out a niche for itself in the visual content realm. Now, with TikTok possibly facing a shutdown, Pinterest could capture a slice of that user base looking for inspiration and creativity. Analysts say this switch might give Pinterest a user boost, helping solidify its position in the market.

It seems like users may find themselves drawn to Pinterest’s well-established ecosystem for curated content and ideas. Just imagine home crafters worldwide suddenly in search of new platforms, they might just find their new digital sanctuary in Pinterest’s boards. This shift could translate to increased engagement and higher advertising revenue, a key element in Pinterest maintaining its rosy prospects as reflected in recent price target upgrades.

Financial Overview: Earnings and Growth

Pinterest’s financials paint an interesting picture. In the latest earnings report, the revenue hit approximately $3B, and a look into their recent cash flow statement reveals stability. Operating cash was solid at $248M, demonstrating the company’s capability to generate cash from its core operations.

The marketing and selling expenses, standing at $249M, emphasize Pinterest’s commitment to capturing more market share. The balanced approach of spending ensures the company continues to appeal to users while steering cautiously through financial waters.

Pinterest keeps a healthy valuation with a reasonable price-to-earnings ratio of 104.06 despite the competitive landscape. Furthermore, the leverage ratio is at a steady 1.2, and Pinterest showcases a current ratio of 7.9, suggesting a robust liquidity position capable of meeting short-term obligations.

Key Insights and Stock Potential

Zooming into key insights, Pinterest’s robust response to market dynamics is evident. The company’s valuation measures suggest an affordable value proposition for prospective traders. With a price-to-cash-flow ratio of 22.7 and a price-to-tangible book ratio of 8.09, Pinterest seems well-positioned for trader interest.

The stock repurchase program valued at $2B reflects the board’s confidence in asset value expansion. This strategic decision might be deemed intelligent, particularly if the company capitalizes on favorable market conditions stemming from its evolving ecosystem and potential user influx due to TikTok’s woes.

In conclusion, Pinterest appears geared for growth on several fronts. With baseline profitability secured through effectively controlled costs relative to revenue, the path forward will be determined by how Pinterest navigates the competitive social media landscape, unforeseen obstacles, and the potential of shifting tides within its domain. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” This wisdom applies equally to Pinterest’s strategic navigation of challenges. The support of strategic partnerships and advertising initiatives remains central to Pinterest’s plan moving through 2025.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”