Pinterest still learning the sell-side game

Loup Venture thinks Pinterest (NYSE:PINS) made a strategic error by running up analyst expectations on its short-term growth potential during its pre-IPO roadshow.

“Based on our experience as sell-siders on over 20 IPOs, Pinterest would have been better off speaking about its near-term prospects more conservatively to push estimates for CY19 to around $1 billion or even slightly lower rather than the $1.07 billion that investors expected,” writes analyst Doug Clinton.”

“It’s unlikely that difference in CY19 revenue would have impacted the deal price, but it would have helped avoid the double-digit percentage decline post earnings. It may have even pushed the stock higher on the report if the guide was 6-8% higher than expectations,” he adds.

Pinterest closed at $26.70 on Friday vs. the post- IPO high of $35.29.

Previously: Pinterest -17% on wider loss, downside FY view (May 16)

Previously: Analysts shrug off Pinterest print (May 17)


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