Pinterest's Q3 Results, Q4 Outlook Point to Growth Deceleration, Wedbush Says

MT Newswires Live10-30 23:03

Pinterest's (PINS) Q3 results and Q4 guidance point to growth deceleration after a stronger first half of the year, largely reflecting regulatory changes affecting European advertisers, Wedbush Securities said in a Friday note.

The company reported Q3 non-GAAP earnings and revenue below analyst expectations.

Wedbush said regulatory changes affecting cross-border sellers in Europe were a key factor behind the revenue slowdown, while improvements in Pinterest's go-to-market efforts were not enough to offset the weakness.

The investment firm said the company faced timing-related factors in advertising spending and softness in certain categories in the US and Canada. However, it said the management does not see any structural issues in the region.

Pinterest's Q4 revenue guidance came in below the analyst estimate. Wedbush added that the spending pullback among cross-border sellers is not expected to reverse during the holiday quarter.

Wedbush maintained a neutral rating on the stock and cut its price target to $20 from $24.

Shares of the company were down nearly 7% in early Friday trading.

Price: 18.56, Change: -1.36, Percent Change: -6.84

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