Pinterest Stock Dips as Analysts See Platform ‘Struggling’ To Grow Ad Revenue | Global News Avenue

interest (passwordShares of the social media company fell on Monday after analysts at Jefferies downgraded it on ad revenue concerns.

The company downgraded Pinterest to “hold” from “buy” and lowered its price target to $32 from $40. The consensus target price among analysts tracked by Visible Alpha is about $39. shares interest It was down more than 1% in recent trading and about 18% in the past 12 months.

Jeffries said Pinterest is “trying to move beyond experimental” advertiser spending and toward “always-on” ad buying. It may also be “too early” for Pinterest’s new Performance+ AI-powered advertiser tool to achieve the mid-teens revenue growth Wall Street is calling for in the first quarter, analysts added.

Jefferies expects growth of 10%, while the Visible Alpha consensus is for 13%.

interest CEO Bill Ready says the company’s “AI investments are driving results” as the company reports Lower-funnel advertising tools like direct links are the fastest-growing segment Third quarter results November. The company’s revenue increased 18% during the period, which was lower than analysts’ expectations.