Pinterest, Inc PINS is set to print fourth-quarter financial results after the market closes Thursday. The stock was trading near flat heading into the event.
When the social media and “idea” generating stock printed its third-quarter results on Oct. 30, the stock gapped up over 17% the following day and entered a steep uptrend, which brought Pinterest to a high of $41.60 on Tuesday.
For the third quarter, Pinterest reported EPS of 28 cents on revenue of $763 million. The company beat the EPS estimate of 20 cents and revenues of $743.5 million.
For the fourth quarter, analysts estimate Pinterest will print earnings per share of 51 cents on revenues of $989.53 million.
On Feb. 5, Keybanc analyst Justin Patterson maintained an Overweight rating on Pinterest and raised the price target from $37 to $48. The new price target suggests about 17% upside for Pinterest.
From a technical analysis perspective, Pinterest’s stock looks set to trade higher over the coming days, having developed a possible bull flag pattern within an uptrend. It should be noted, however, that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.
Traders and Investors looking to play the possible upside in Pinterest stock but with diversification may choose to take a position in the AXS 2X Innovation ETF TARK. TARK is an actively managed double-leveraged ETF aiming to return 200% of the daily performance of Cathie Wood-led ARK Innovation ETF ARKK, the latter which holds a 0.42% weighting of Pinterest.
For traders bearish on Pinterest, AXS Short Innovation Daily ETF SARK is an actively managed ETF aiming to inversely track the daily performance of ARKK.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Pinterest Chart: Pinterest’s possible bull flag pattern was formed between Feb. 1 and Thursday, with the upward-sloping pole created over the first four trading days of that timeframe and the flag printing since. If Pinterest breaks up from the flag on higher-than-average volume, the measured move is about 12%, which suggests Pinterest could rise up toward about the $45 mark in the future.
- Pinterest is also trading in a confirmed uptrend, with the most recent higher high formed on Tuesday at $41.60 and the most recent higher low printed at the $39.53 mark on Wednesday. Pinterest has been trading in a strong uptrend since Oct. 26, being guided higher by the eight-day exponential moving average (EMA).
- Bullish traders want to see Pinterest receive a bullish reaction to its earnings print and for the stock to break up from the flag to reach a new 2-year high. Bearish traders want to see Pinterest suffer a negative reaction to the news and then for selling pressure to drop the stock under the eight-day EMA, which may be a warning sign, indicating downside pressure could accelerate.
- Pinterest has resistance above at $42.52 and at $48.29 and support below at $38.24 and at $35.93.
Photo by Sean Pollock on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
