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Pinterest stock rises on upgrade from Goldman Sachs

Yahoo Finance Live looks at Pinterest shares amid a stock upgrade and recent notes regarding its growth outlook.

Video Transcript

SEANA SMITH: It's time for Triple Play, three stocks that we're watching in the final 30 minutes of trading-- Pinterest, Tesla, and Uber. Let's kick it off with my pick, and that is Pinterest. Goldman upgrading the stock to a buy, lifting its price target to $31 a share, implying 25% upside for the stock on what they call a more positive risk-reward skew.

Now, analyst Eric Sheridan is optimistic about Pinterest's efforts to grow its user base and also increase monetization, writing in a note to clients that, quote, "Despite some uncertainty in the near term, we see Pinterest as positively levered to a number of long-term secular growth themes."

Now, those themes include engagement and ad spend shifting online, also social commerce and the creator economy. Pinterest shares up more than 30% in the past three months, but year to date, still well in the red, off just over 40%. So, Jared, we have Goldman getting a little bit more bullish on Pinterest. You can't help but wonder how much of a valuation call this is with the stock off so significantly since the start of the year.

JARED BLIKRE: I think so, Seana. A picture is worth a thousand words. Let's go to the YFi Interactive where I have a max chart going back to their IPO date, late 2019. Actually, this is just the last three years. If we put a max-- there we go-- we can see all the way back to 2019.

Anyway, we got this Brian Sozzi bulging bicep pattern, as he likes to call it. But as you can see-- no lie. We do a lot of this on the morning show. You should check it out sometimes. There is a rounded bottom here that the stock has been making all year long. 28 looks like a make or break level for me. It's right there. A lot of times, you might see a little bit of a dip. That would be a massive saucer and handle formation that I'm tracking right there.