Piper Sandler notes slowing traffic for Pinterest-Amazon partnership

Auto Pins (India)

14/06/2024 12:46

** Shares of image-sharing platform Pinterest  PINS.N  fall
3.5% to $41.72 premarket
    ** Piper Sandler notes lower growth in traffic to Amazon.com
 AMZN.O  via Pinterest in May - traffic grew over 83% Y/Y, a
deceleration from around 147% in April and over 100% in the last
seven months 
    ** PINS' cost per click (CPC) trends in Feb-May suggest a
continued decline, remaining below the average of $0.90 - Piper
Sandler
    ** PINS partnered with AMZN last year; in February,
brokerage estimated $120 mln revenue increment from the
partnership in early FY24 for PINS 
    ** Co also raised its Q2 revenue forecast on expectations of
a boost from its ad partnerships with AMZN and Alphabet
 GOOGL.O  
    ** However, brokerage reiterates its overweight rating and
top mid-cap pick status for PINS on constructive takeaways from
its discussion with management; stands on PT of $52
    ** PINS has gained over 16% YTD, as of last close 

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))