Morgan Stanley Downgrades Pinterest Amid Challenges From Facebook, Google

Morgan Stanley analyst Brian Nowak downgraded Pinterest Inc PINS to Equal Weight from Overweight with a price target of $30, down from $53. The price target implies an upside of 13.4%.
Pinterest's user and time spent trends were challenging while it shifted existing time spent toward lower-monetizing creator videos.
Nowak acknowledged the edge in larger platforms with more engineers, ad salespeople, and existing advertisers like Facebook rebranded Meta Platforms Inc FB and Alphabet Inc GOOG GOOGL Google to monetize this format over smaller players like Pinterest.
Pinterest's Q4 sales of $847 million beat the consensus of $827.16 million. EPS of $0.49 beat the consensus of $0.45.
Pinterest CFO admitted that Q4 Monthly Active Users declined due to Google's November algorithm updates and competition.
Price Action: PINS shares closed higher by 3.77% at $26.45 on Monday.

Analyst Calendar