Pinterest, Inc (NYSE:PINS) is set to print its fiscal second-quarter financial results after the market closes on Monday. The stock was trading about 2.4% higher heading into the event.
When the social media and “idea” generating stock printed its first-quarter results on April 27, the stock gapped up over 8% the following day and closed that trading session over 13% higher but eventually resumed its downtrend, which brought Pinterest shares to a 52-week low of $16.14 on May 24.
For the first quarter, Pinterest reported EPS of 10 cents on revenue of $574.89 million. The company beat the EPS estimate of 3 cents and revenues of $572.79 million.
For the second quarter, analysts estimate Pinterest will print earnings per share of 18 cents on revenues of $673.66 million.
On July 26, KeyBanc analyst Justin Patterson maintained an Overweight rating on Pinterest and lowered the price target from $36 to $24. The new price target suggests about 21% upside for Pinterest.
From a technical analysis perspective, Pinterest’s stock looks set to trade higher over the coming days, but it should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.
See Also: Pinterest To Report Earnings After Today's Closing Bell: Here's What To Look For
The Pinterest Chart: Over the last four days, Pinterest has rebounded over 15% due to a bullish double bottom pattern, which the stock printed on June 14 and July 26 at the $16.92 level. Since printing the pattern, Pinterest has formed four bullish daily candlesticks, closing each trading session near its high-of-day price.
- From a bearish perspective, Pinterest negated its daily uptrend on July 26, when the stock printed a lower low under the low of $17.32 that was formed on July 14. If Pinterest forms a lower high under the $21.68 a downtrend will confirm.
- Pinterest was trading on lower-than-average volume on Monday, which indicates traders are likely waiting to see how the stock reacts to its earnings print before taking a position. About 11.8 million Pinterest shares had exchanged hands Monday afternoon compared to the 10-day average of 16.7 million.
- Bullish traders want to see a bullish reaction to Pinterest’s earnings print cause the stock to soar up above the $22.08 level, which has been acting as heavy resistance. Bearish traders want to see Pinterst drop down below the $16.14 mark, which would indicate major support has been lost and a larger downtrend is on the horizon.
- Pinterest has resistance above the $22.08 level at $27.32 and $31 and support below at $19.04 and at the 52-week low.
