Pinterest ( NYSE: PINS ) rebounded from a sharp sell-off in extended-hours trading after it reported fourth-quarter results, as Wall Street firms came to the image-sharing social network's defense, citing improving trends.
Wells Fargo analyst Brian Fitzgerald, who has an overweight rating and per-share price target on Pinterest ( PINS ), pointed out the improving engagement metrics and monetization stock as reasons to be positive. Fitzgerald also cited that sessions "grew faster than users," as weekly active users compared to monthly active users hit a record 61%.
"Macro remains challenging and [near-term revenue] outlook below our prior estimates, but [Pinterest] appears well positioned as macro firms," Fitzgerald wrote, citing the aforementioned progress on engagement, "strong" Generation Z trends, the improvement in sessions and monetization as well as continued progress on shopping and expenses.
Monness, Crespi, Hardt analyst Brian White was a bit more cautious, reiterating the firm's neutral rating, though he noted that the company has made improvements on the cost structure and progress attracting users.
"The tone of the call was mixed with Pinterest highlighting improved engagement on the platform, a leaner cost structure, and lackluster digital ad spending trends," White wrote in a note to clients.
Nonetheless, White pointed out that Pinterest ( PINS ) expects to "meaningfully expand" EBITDA margin this year as it continues to improve cost and be more disciplined about spending.
Pinterest ( PINS ) shares declined 1% in premarket trading on Tuesday.
In addition to the fourth-quarter results, Pinterest ( PINS ) also said its CFO Todd Morgenfeld will leave the company and it would launch a $500M stock buyback program .
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Pinterest rebounds from sharp sell-off as analysts defend, citing improving trends