Pinterest Well-Positioned for Social Commerce, Ecommerce Advertising, Wedbush Says
10:02 AM EST, 02/05/2021 (MT Newswires) -- The Q4 results and Q1 2021 guidance of Pinterest (PINS) that were well ahead of expectations demonstrate that the company is positioned "squarely in the sweetest spot of digital advertising," said Wedbush analysts Ygal Arounian and Chad Larkin in a research note Friday.
Pinterest Q4 Adjusted EPS more than tripled to the level of $0.43, up from $0.12 a year earlier. The social-media company also reported revenue for the December quarter of $705.6 million, up from $399.9 million a year earlier. That result also surpassed the consensus estimate of $647.1 million.
The company's strength is particularly evident in the retail category and during holidays, the analysts said. Added to that, Pinterest's strengths have to do with the increasing importance of omnichannel strategy and its popularity with the young audience.
Additionally, the investments Pinterest has made in the product, including video, "can be extremely valuable in increasing engagement," said Wedbush. This will make it more attractive to both creators and advertisers, with increasing monetization opportunities, including international ones, said Wedbush, which has a share price target of $77.84.
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