Pinterest and Snap offer jarring contrasts in earnings outlook

By Jon Swartz

It's the classic good-news/not-so-good-news scenario for analysts who follow Pinterest Inc. and Snap Inc.

Pinterest (PINS) is primed for a prosperous holiday season after striking a partnership with Amazon.com Inc. (AMZN), leading to a price-target hike to $34 from $23, according to Wells Fargo research note on Tuesday.

"We believe Pinterest is making the optimal strategic move to outsourcemonetization to third parties to overcome its attribution and scale challenges," Wells Fargo analyst Ken Gawrelski wrote. "This includes an announced partnership with Amazon, now expected to be live in time for the 2023 holiday season, and future expected partnerships with other scaled retail media networks."

The outlook isn't quite as bright for Snap (SNAP). Gawrelski expects Snap to report "modest upside to Street consensus."

Although fears over brand advertising are decreasing among industry watchers, that factor makes up just one-third of Snap's total revenue and there is "no meaningful evidence of progress on Snap-specific direct response advertisingfixes," Gawrelski said in a note Tuesday.

He maintains a price target of $10 for shares of Snap.

-Jon Swartz

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

06-28-23 1247ET

Copyright (c) 2023 Dow Jones & Company, Inc.