Pinterest (NYSE: PINS) stock price bounced after reports of strong growth in the user base. Reports are suggesting that Pinterest has surpassed Snapchat (NYSE: SNAP) as the third top social media platform in the United States. Moreover, the data is suggesting a sustainable growth in the coming years. However, analysts have a mixed opinion over future fundamentals.
Some analysts have dropped the price targets amid revenue growth trends and intense market competition. The Pinterest stock lost significant value in the final quarter of last year. Fortunately, the PINS share price rebounded since the beginning of this year. Pinterest shares are currently trading around $23, up slightly from a 52-weeks low of $17 a share.
Some Analysts See Continued Growth
Morgan Stanley has provided a price target of $30, citing the recent pullback as a buying opportunity. The firm has pointed out several fundamental strengths such as a healthy audience, engagement growth, solid progress toward profitability and strong revenue growth.
Susquehanna provided a Neutral rating with the price target of $22 while Rosenblatt has set a $23 price target for Pinterest.
Pinterest Stock Could Extend Rally Amid Users Growth
The new eMarketer data indicates Pinterest has surpassed Snap considering the user base. Its users rose 9% year over year to 82.4 million in 2019, up from last year users of 75.5 million. On the other hand, SNAP’s users stood around 80 million in 2019.
Moreover, eMarketer forecasts the extension of this trend in the coming years. The firm anticipates Pinterest users to hit 90.1M by 2022.
On the other hand, the company has also been supporting investor’s sentiments through financial numbers. Its revenue jumped 47% year over year in the latest quarter. The social media platform has raised its full-year revenue guidance to $1.1-1.12B from the previous estimate for $1.095-1.12B.
The management appears optimistic about future strategies. Ben Silbermann, Pinterest CEO and Co-founder said, “We redesigned Pinterest to make the service more intuitive and improved recommendations quality to help people discover new ideas they didn’t know about before.”