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Pinterest Inc. (PINS: NYSE) was trading with serene ups and downs throughout the year, sustaining the momentum decisively. The stock is participating in the market swings, but with relatively weaker momentum and has withheld its gains. The share is now attracting early investors willing to invest in FY23. The recent Q3 earnings report justifies a gradual inclination of revenue growth of 8% year over year to $685 million.
On December 13, Piper Sandler’s analyst Thomas Champion upgraded Pinterest stock’s rating from neutral to overweight and increased the target price from $25 to $30. PINS stock reacted to the news of the upgrade and surged 7% on the same day. The price meets the supply zone that resulted in last week’s profit booking.
What does the daily Chart Indicate?
On the daily chart, PINS share was trading within the uptrend from the last few days. The share price retests the supply range of $27 multiple times but cannot surpass the range. This bullish exercise of retesting the breadth increases the volume buildup. The price takes support at its 50-day moving average and is willing to cross the near-term hurdle of $27. A rally will be seen if PINS price succeeds in going through this range. Despite the uptrend, if price returns, the support level is at $22.
PINS stock price was trading at $24.53 at the end of today’s session; It gained successively from the last 3 sessions setting a positive outlook.
As per the leading and lagging indicators, PINS stock is a good investment candidate for FY23. Moreover, the fib extension showcases a target price of $30 for the near term and a positional target of $38 for upcoming months.
Aspects & Estimations
Pinterest Inc. is a visual discovery engine company with a market cap of $16.637 billion. Pinterest stock has consistently given investors to remain optimistic in the past few years offering growth in revenue and profit margins. Additionally, the company has a free cash flow of $64.45 million and an EBITDA margin of 8% current, showing robust fundamentals.
Conclusion
PINS is trading above its 20-day EMA and facing resistance at its 200-day EMA. It is attempting to exit the tight range it has encountered in the last months. Moreover, per the valuation, the stock trades at a decent price of around $25. For FY23, Pinterest Inc stock could be a good candidate to add to your portfolio.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
