Bernstein’s Mark Shmulik keyed in on Pinterest’s PINS numerous references to its expectations for “meaningful margin expansion.” While he didn’t doubt that the company will see its margins expand over the course of the year — buoyed by revenue leverage and cost-cutting — he noted a lack of specificity.Bernstein’s Mark Shmulik keyed in on Pinterest’s PINS numerous references to its expectations for “meaningful margin expansion.
“With resources constrained across the sector, the shopping bet is on a ticking clock to inflect,” he wrote. RBC Capital Markets analyst Brad Erickson, who rated the stock at sector perform with a $26 target price, was also looking to see more from the company. “Admittedly, the bar is now lowered but we await signs of a more seismic shift in PINS’ value prop before jumping on the commerce bandwagon,” Erickson continued.“Near-term, we don’t see Pinterest escaping the ad winter pressure that practically every other internet ad company is going through,” he wrote. “We are assuming that revenue growth will begin to stabilize or even accelerate in Q2:23, [though] there is currently no real evidence that this will happen.