Pinterest Shares Climb Despite Grizzly Research Short Report

Investors are watching Pinterest, Inc. (NYSE:PINS) shares after Grizzly Research released a short report on the company. 

The Details: Grizzly Research released the report titled, “We Believe Pinterest is in a Death Spiral but Misleadingly Doctors its Terrible Performance Statistics” which contains claims user engagement on the platform is falling. 

Benzinga contacted Pinterest for comment but did not receive a response prior to publication.

The Grizzly Research report claims that the platform's number of reported active users has been stagnant, and the company focuses on "Monthly Active Users" as its predominant KPI metric to "conceal the decline in user engagement and value." 

The report also claims Pinterest is losing traffic in Western markets and covers the losses by highlighting growth in "mostly low-income countries to window-dress traffic statistics."

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What Else: According to Grizzly Research, Pinterest's CEO Bill Ready has been unsuccessful in implementing the company's modern ad strategy and uses "deceptive" language in presentations to paint a picture of growth and positive user engagement to investors. 

According to data from Benzinga Pro, Pinterest shares are trading slightly below the stock’s 50-day moving average of $42.61 and 4.98% of available shares are being sold short. 

Should I Sell My PINS Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Pinterest have increased by 38% in the past year. An investor who bought shares of Pinterest at the beginning of the year would make a profit of $5.35 per share if they sold it today. The stock has fallen 5.57% over the past month, meaning an investor who bought shares on Jun. 1 would see a capital gain of $0.36.

Pinterest shares have an all-time high of $76.91, representing 87% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Pinterest stock currently has an RSI of 16.14, indicating oversold conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

PINS Price Action: According to Benzinga Pro, Pinterest shares are up 1.46% at $41.56 at the time of publication Friday.

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