Visual discovery engine company Pinterest, Inc. enables people to discover and personalize visual content. It allows users to find inspiration for their lives, including recipes, style, home inspiration, DIY, and others; and provides video, product, and idea pins.
PINS’ shares surged last week following the news of long-time Chief Executive Officer Ben Silbermann stepping down, handing over the reins to Google commerce executive Bill Ready. Investors are expecting a deeper push into e-commerce through this transition. Silbermann will retain his board seat as executive chairman.
Bill Ready was previously in charge of Google’s commerce business and was the executive vice president and chief operating officer of PayPal earlier. He brings his expertise in fintech and e-commerce, which is expected to boost PINS’ capabilities.
PINS shares are down 75.4% over the past year and 45.7% year-to-date to close the last trading session at $19.73.
Here’s what could shape PINS’ performance in the near term:
Although the company is expected to benefit from the leadership change, Baird’s Colin Sebastian said, “near-term trends are likely to remain choppy.”
On the other hand, Rosenblatt Securities analyst Barton Crockett thinks that Ready’s lack of experience in growing social media audiences could be PINS’ most significant challenge now.