What Happened?
Shares of social commerce platform Pinterest (NYSE: PINS) jumped 7.2% in the afternoon session after markets experienced a boost after data from the Bureau of Labor Statistics revealed that inflation for the month of February 2025 came in better than expected. The CPI rose 0.2% from the previous month (vs estimates for a 0.3% increase), while headline inflation rose 2.8% year on year (vs estimates for a 2.9% y/y increase). The data revealed inflation continued to edge closer to the Fed's 2% target, but not quite there yet. The reaction wasn't anything wild, but the sentiment leaned positive. The Nasdaq led the way, climbing 1.4%, boosting some tech stocks.
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What The Market Is Telling Us
Pinterest’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was about 1 month ago when the stock gained 26% on the news that the company reported fourth-quarter results, which beat analysts' revenue and EBITDA expectations. Its quarterly guidance for both metrics outperformed Wall Street's estimates. The growth was driven by a record-high 553 million global monthly active users (MAUs), up 11%, and a 6% increase in global average revenue per user (ARPU). Overall, we think this was a good quarter with some key metrics above expectations. Following the impressive performance, Bernstein upgraded the stock from Hold to Buy, adding, "It's possible that this quarter was a one-off, though we see enough evidence in execution to believe the pace of progress is sustainable.".
Pinterest is up 8.8% since the beginning of the year, but at $33.26 per share, it is still trading 26.1% below its 52-week high of $44.98 from June 2024. Investors who bought $1,000 worth of Pinterest’s shares 5 years ago would now be looking at an investment worth $2,499.
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