Long interest in PinterestTrading Idea: Buy Pinterest Stock for Short-Term Gain
In the past month, Pinterest's stock price has increased by 14.55%, making it an attractive option for short-term investors with a somewhat high risk tolerance. The trading idea is to buy Pinterest stock (PINS) based on the provided facts.
Pinterest, Inc. has reported a total of $1.12 billion in short-term investments, indicating a strong financial position. Additionally, the company has a gross profit ratio of 77.59%, which measures how efficiently and effectively a company performs by dividing its gross profit by its total net sales. A high gross profit ratio suggests that Pinterest is performing well.
Furthermore, Pinterest has a low net debt of $-1 billion this quarter, indicating that the company has a solid financial foundation. Net debt is calculated by subtracting a company's total cash and cash equivalents from its total debt. A low net debt indicates that Pinterest has more assets than liabilities.
In terms of net income ratio, Pinterest is currently at 0.882%, which is a positive sign for investors. The net income ratio measures the profitability of a company by dividing its net income by its total net sales. A high net income ratio suggests that Pinterest is generating significant profits.
Overall, this trading idea fits a short investment horizon and a somewhat high risk tolerance. By investing in Pinterest stock, investors can take advantage of the company's strong financial position, solid gross profit ratio, low net debt, and positive net income ratio.
Technical Outlook
Pinterest bulls are focused on pushing the stock past a key resistance level at $29.22 as their next upside milestone, as long as they maintain their dominance. The bulls have been in control as indicated by the Commodity Channel Index (CCI) indicator, which is currently above +100, signifying that the market price is unusually high.
In today's trading session, Pinterest continued its upward trend, gaining a further 0.72% and reaching a stock price of $30.94. This marks the seventh consecutive day of gains for the stock.
Over the past five days, Pinterest's share price has appreciated by around 25.34%, outperforming the Nasdaq by a significant margin of 790.4% so far this year. The company has a market capitalization of $20.86 billion.
On Friday, the stock saw 12.93 million shares traded, slightly below the multi-day average of 13.53 million.
In technical analysis, Pinterest is currently rated as "Neutral" during this positive session, gaining 22 cents, or 0.72%. The CCI indicator, showing the market price is unusually high, supports the bullish sentiment.
Other notable movements in the market include a 1.39% increase in Alphabet, with a closing price of $130.37, a 1.6% increase in Comcast, and a 1.8% increase in Netflix on Friday.
