Pinterest Inc. ended the Tuesday session with a broad plunge after Guggenheim Partners downgraded the stock from buy to neutral.
The social networking service slumped 9.01% or 3.28 points to $33.13 per share. The closing price came after it fell to an intraday drop of 10.96%, a new 52-week low.
The stock continued its decline in the after-hours trading as it slashed 0.24% or 0.08 points to $33.05.
It also largely skidded 51.58% or 35.29 points in the past year, underperforming its social media peers.
Accordingly, Guggenheim mentioned that Pinterest’s aggregate global audience weakened to 218.10 million at the end of 2021.
This latest data plummeted from the 226.90 million users last November 30, marking its second consecutive dip.
The company flagged broad weakness as it decreased from its largest total audience reach of 229.30 million in October last year.
At the same time, Guggenheim noted data from Apptopia, a third-party research firm. It further cited a dive in average daily downloads through December 15.
In the stated case, this fall reflected the fourth monthly streak of downturns in the image-sharing firm.
The global investment business now expects Pinterest to report 438.00 million downloads monthly active users for the fourth quarter.
It is significantly lower than the previous projection of 447.00 million users.
Moreover, analysts reduced the tech giant’s price target from $46.00 to $39.00.
Pinterest Eyes Rebound in 2022; MAUs, Sales
Pinterest grappled with retaining its users in the past year as economies slowly reopened.
Still, the firm beat expectations in its third-quarter earnings report. Its revenue of $633.00 million surpassed the average market expectation of $630.90 million.
Correspondingly, its Q3 monthly active users (MAUs) increased to 444.00 million, higher than the 442.00 million a year earlier.
The data stated a bullish outlook for the company as it generated more revenue per user. It gained 37.00% to $1.41 per user from the $1.03 a year ago.
At the same time, Pinterest reported a profit of $94.00 million, a full reversal of the $94.00 million loss it incurred in the fiscal year 2020
If the company continues its strength from the third-quarter results, its stock will recover from its downtrend.
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