HSBC downgrades Pinterest to Hold on softer near-term outlook

HSBC downgraded Pinterest (PINS) to Hold from Buy with a price target of $24.90, down from $34.50. The “abrupt nature” of the jobs cut announcement just ahead of Q4 earnings report is a “sharp reversal” from Pinterest’s recent spurt of hirings and likely points to a softer near-term outlook, the analyst tells investors in a research note. The firm says that while the company is not a newcomer to AI, its sales performance has “increasingly diverged” from peers that are perceived as “AI winners.” HSBC believes Pinterest’s renewed AI push is “coming without any indication of cost savings or revenue acceleration.” As such, it has turned cautious on the company’s competitive positioning.