Trading Strategies for Pinterest Stock Before And After Q4 Earnings

Pinterest, Inc (NYSE: PINS) is set to print fourth-quarter financial results after the market closes Thursday. The stock was trading near flat heading into the event.

When the social media and “idea” generating stock printed its third-quarter results on Oct. 30, the stock gapped up over 17% the following day and entered a steep uptrend, which brought Pinterest to a high of $41.60 on Tuesday.

For the third quarter, Pinterest reported EPS of 28 cents on revenue of $763 million. The company beat the EPS estimate of 20 cents and revenues of $743.5 million.

For the fourth quarter, analysts estimate Pinterest will print earnings per share of 51 cents on revenues of $989.53 million.

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On Feb. 5, Keybanc analyst Justin Patterson maintained an Overweight rating on Pinterest and raised the price target from $37 to $48. The new price target suggests about 17% upside for Pinterest.

From a technical analysis perspective, Pinterest’s stock looks set to trade higher over the coming days, having developed a possible bull flag pattern within an uptrend. It should be noted, however, that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.

Traders and Investors looking to play the possible upside in Pinterest stock but with diversification may choose to take a position in the AXS 2X Innovation ETF (NASDAQ: TARK). TARK is an actively managed double-leveraged ETF aiming to return 200% of the daily performance of Cathie Wood-led ARK Innovation ETF (ARCA: ARKK), the latter which holds a 0.42% weighting of Pinterest.

For traders bearish on Pinterest, AXS Short Innovation Daily ETF (NASDAQ: SARK) is an actively managed ETF aiming to inversely track the daily performance of ARKK.

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The Pinterest Chart: Pinterest’s possible bull flag pattern was formed between Feb. 1 and Thursday, with the upward-sloping pole created over the first four trading days of that timeframe and the flag printing…