Yesterday’s session ended at $36.05. The 52-week high for shares of Pinterest (NYSE:), a social media platform, was reached yesterday. Despite the company’s impressive revenue and earnings growth in its last reported quarter, PINS’ shares plunged in price due to its sluggish user growth. The company also expects lower levels user engagement over the next months. The stock is also overvalued for its current price. Is PINS worth buying now? Our opinion is that PINS should be bought now. Pinterest, Inc., San Francisco, provides a visual discovery engine for the United States as well as internationally. The company’s engine allows people to find inspiration for their lives, including recipes, style, and home inspiration, DIY, and others. This image-based search engine became popular during last year’s pandemic. The company hasn’t been so generous in the aftermath of the pandemic. PINS recorded a decline in active monthly users for its previous quarters, due to outdoor activity being reintroduced. Furthermore, its advertising business took a hit as advertisers’ willingness to spend on PINS’ services fluctuated due to several pandemic-related factors. As the country emerges gradually from its pandemic-related restrictions, it expects to see a decrease in user engagement, growth and retention.

Earlier, PINS said Apple’s Inc. (AAPL) iOS privacy changes had affected its “ability to track user actions off our platform and connect their interactions with on-platform advertising.” Also U.S. payments giant PayPal’s cancellation of its acquisition of PINS caused its share price to decline more than 12% on the news. PINS generated better than expected earnings and revenue, however its decrease in monthly users during its most recent quarter caused investors to be anxious. The company’s Monthly Active Users (MAU) declined 10% in the United States, while its global MAU increased only marginally. Following the quarter-end release, stock prices plunged.

Stock has fallen 49% in the last year, and 46% over the year to close at $36.05. PINS shares fell 22.5% over the last month. Stock traded below its 50-day and $200-day moving medians in the last trading session. This indicates a general downtrend.

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