Zhitong Finance learned that investment bank Piper Sandler said that Pinterest (PinsUS) with Amazon (AMZNUS) is likely to expand from what was initially estimated, which could lead to Pinterest and Google (Googl.)US) to make a deal.
In April 2023, Pinterest entered into a strategic partnership with Amazon. The partnership aims to drive more brands and users to Pinterest**, which in turn will spur revenue growth. It is reported that the cooperation with Amazon will enable Pinterest users to get a more convenient shopping experience, and users will be taken directly to Amazon for shopping after clicking on the product link on Pinterest.
Piper Sandler analyst Thomas Champion has an "overweight" rating on Pinterest. "In terms of our sample of search terms on Pinterest, we estimate that Amazon's co-op ad mix is about 30% or more," the analysts said. If you just look at feed ads, the percentage is much higher. "We expect more partners to follow. Analysts point out that one of Pinterest's potential partners could be Google.
Analysts say the partnership with Amazon could give Pinterest $1$200 million in incremental revenue, representing approximately 4% of growth; If direct links are taken into account, Pinterest could see a 24% sales growth rate this year, well above Wall Street's forecast of 17%.
Analysts said that Amazon's partnership with Pinterest may be around 30%, but after analyzing 10 dynamic ads, the proportion exceeded 50%, indicating that Amazon's partnership with Pinterest has room to expand.
Pinterest will announce its fourth-quarter 2023 results after U.S. stock market hours on Feb. 8. Analysts widely expect the company's Q4 revenue to be 9$9.8 billion, or EPS of 0.8 billion$51.