Pinterest, Inc PINS is poised to release its fourth-quarter financial results after the market closes Thursday. The stock was trading near flat heading into the event.
As the sun set on October 30, Pinterest reported third-quarter results and watched its stock soar by over 17% the following day. The steep uptrend that followed propelled Pinterest to a high of $41.60 on Tuesday.
Pinterest’s third-quarter report included an EPS of 28 cents on revenue of $763 million, surpassing the EPS estimate of 20 cents and revenues of $743.5 million.
For the upcoming fourth quarter, analysts are estimating an EPS of 51 cents on revenues of $989.53 million.
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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 appears poised to trend upwards in the coming days, potentially forming a bull flag pattern within an uptrend. However, it’s crucial to recognize that holding stocks or options over an earnings print is akin to gambling, as stocks can react unexpectedly.
For those looking to capitalize on the potential upside in Pinterest stock and diversify their position, the AXS 2X Innovation ETF TARK may be an option. TARK is an actively managed double-leveraged ETF aimed at returning 200% of the daily performance of the Cathie Wood-led ARK Innovation ETF ARKK, the latter of which holds a 0.42% weighting of Pinterest.
For traders with a bearish outlook on Pinterest, the AXS Short Innovation Daily ETF SARK is an actively managed ETF aiming to inversely track the daily performance of ARKK.
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The Pinterest Chart: Pinterest’s potential bull flag pattern emerged between Feb. 1 and Thursday, with the upward-sloping pole created over the initial four trading days of that period and the flag printing since. If Pinterest breaks up from the flag with an increase in trading volume, the measured move is approximately 12%, hinting at a potential rise towards the $45 mark in the future.
- Pinterest is also trading in a confirmed uptrend, with the most recent higher high reached at $41.60 on Tuesday and the most recent higher low set at the $39.53 mark on Wednesday. Pinterest has been moving in a strong uptrend since Oct. 26, propelled by the eight-day exponential moving average (EMA).
- Optimistic traders are hopeful for a positive market response to Pinterest’s earnings release and are anticipating the stock to break upwards from the flag, reaching a new 2-year high. Conversely, pessimistic traders are banking on a negative market reaction to the news and subsequent selling pressure pushing the stock below the eight-day EMA, potentially foreshadowing accelerated downside pressure.
- Pinterest faces resistance at $42.52 and $48.29, with support levels lying at $38.24 and $35.93.
Photo by Sean Pollock on Unsplash