Converse declined to provide a copy of his note, citing “a company policy to not share any of our published work.”
Pinterest shares dived 9.3% to $76.61, while Snap was down 5.3% to $60.49.
Seeking Alpha reports that Converse wrote: “Q1 looks like it ended softer than mid-quarter expectations would indicate,” with some ad agencies and partners noting a deceleration from Q4 levels. Briefing.com adds that Cleveland Research indicated mixed trends from larger retailers, with a slowing page of net-new advertiser gains, and moderating spend levels from some new advertisers.
Pinterest didn’t immediately respond to a request for comment.
Bernstein analyst Mark Shmulik wrote in a research note, however, that Pinterest stock’s (ticker: PINS) slide on the Cleveland Research note has created a “tactical buying opportunity.” Shmulik reported that his own checks found strong spending levels, with “some pleasant surprises” for both Pinterest and Snap (SNAP). He has a Market Perform rating and $85 target price on Pinterest shares.
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