The shares of PinterestGuggenheim reduced the stock’s rating from Buy to Neutral due to user declines. The stock dropped 10% Tuesday. Guggenheim has also decreased its price target, from $46 to $29.

Based on data taken from Pinterest Ads ManagerGuggenheim stated that the company’s global audience reached 218.1 million people by December, down from 229.9 million November.

The firm stated in a Tuesday note that “this reflects the second consecutive sequence decline” but noted that it was still below the highest total audience reach in 2021 (229.3mm) in October. Apptopia data was also used by the company. It showed that there had been a decrease in downloads per day through December 15. Guggenheim indicated that this would make it the fourth consecutive month with a sequential decrease month over month.

Guggenheim expects Pinterest will report 438 millions monthly active users in the fourth quarter. Guggenheim had predicted 447 million users.

The firm stated that they still believe there is value to be created by the company’s global user base, high-purchase intent user behavior and large global user base. However, the company doesn’t believe that the platform’s uses will be developing as fast as its peers. There is a risk that other social commerce platforms may improve faster than Pinterest does. We see the risk of valuation multiple contraction if there is no user growth.”

Pinterest shares fell nearly 45% in 2021 compared with its peers on social media. Although the company started strong in 2018, it suffered a setback as many people turned to Pinterest during the Covid-19 epidemic. user interest appeared to waneAs the economy opened up. As of Tuesday afternoon, the company’s market capital was approximately $21 billion.

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