Pinterest (PINS) Daily Chart

PROs:

Revenue is forecast to grow 17.77% per year
Revenue grew by 51% over the past year
PINS’s Revenue is forecast to grow faster than the US market per year
PINS’s short & long term assets exceed its short & long term liabilities
PINS has solid balance sheets
PINS has sufficient cash runway for more than 3 years
Earnings beat expectations over the last 3 quarters
Analysts are optimistic about PINS


CONs

Shareholders have been diluted in the past year
Currently unprofitable and not forecast to become profitable over the next 3 years
Highly volatile share price over the past 3 months
1 year return = -37%
PINS underperformed the US Interactive Media industry over the past year
PINS underperformed the US market over the past year
PINS share price is slightly overvalued compared to its fair value price
PINS’s Return on Equity is forecast to be low in 3 years time
Last 3 years earnings growth = -2061%
PINS has a negative return on Equity
PINS doesn’t pay a dividend


Report:

From a Fundamental standpoint, the data is mixed, so it's difficult to make an assumption based on that alone. On the technical front, PINS has been declining from the 22 of August 2019. An attempt was made to recover on the 16th of December 2019 but failed on the 7th of February this year, and the decline resumed. The rally of late started on the 19th of March this year and has brought us within spitting distance of the top of the descending channel and the 38.2% Fibonacci retracement level (taken from the August highs of last year and the March lows of this year). What happens at (1) could determine the direction for the short to medium term.

Bottomcatcher’s Opinion: If we can convincingly break, hold and close above the 38.2% fib level on the Weekly time frame, we could consider taking a long position with a stop loss below the top of channel line (which will become support). Alternatively, if resistance holds at (1) we can expect to see a further decline, which would negate the long trade set-up.

Note: Levels are subject to change in the near future.