What Happened:
Shares of social commerce platform Pinterest (NYSE: PINS) jumped 5.97% in the morning session after analyst Lloyd Walmsley of UBS upgraded the social media stock from Neutral to Buy and forecasted a more than 25% increase in the share value as the company advances its advertising plan.
What is the market telling us:
Pinterest's shares are somewhat volatile and over the last year have had 46 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Pinterest is up 23.6% since the beginning of the year, and at $28.3 per share it is trading close to its 52-week high of $29.1 from February 2023. Investors who bought $1,000 worth of Pinterest's shares at the IPO in April 2019 would now be looking at an investment worth $1,600.
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