Pinterest's Plunge Is Poised to Snap Nonstop Streak of Gains
(Bloomberg) -- Pinterest Inc. shares were on track to do something on Tuesday that the newly public stock has yet to do - end lower.
The stock slipped as much as 7.7 percent, putting the social media company, which is known for its inspiration boards, on track to end a seven-day rally that began when it went public about two weeks ago.
Even with the day’s dip, it remains up around 71 percent from its $19 offering price.
On Monday, Pinterest said that underwriters of its initial public offering had exercised their option to purchase an additional 11.3 million shares of Class A common stock.
According to data compiled by Bloomberg, two analysts have the equivalent of buy ratings on the stock, while it has one hold rating and one sell. The average price target is $21, which implies downside of about 35 percent from current levels.
Pinterest’s decline comes in a broadly negative session for Internet-related names, pressured by a sell-off in Google-parent Alphabet Inc. following its reporting of weaker-than-expected first-quarter revenue.
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