As previously reported, BofA downgraded Pinterest (PINS) to Neutral from Buy with a price target of $19, down from $39. The firm’s prior thesis that improving engagement and the ramp of Performance+ would translate into better performance “has not played out,” says the analyst, who expects AI driven competitors like Google (GOOGL) and soon OpenAI to be increasingly competitive. Additionally, the margin expansion cycle appears to have reached an end, impacting EBTIDA growth, the analyst added.
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