With all the stories coming out about tech layoffs, there’s one new surprise afoot: a possible new partnership. This partnership would see Pinterest (NASDAQ:PINS) team up with Google (NASDAQ:GOOG). As a result, Pinterest is up, if only slightly, in Monday afternoon’s trading.
Word from RBC Capital Markets analyst Brad Erickson suggests that the duo would build a “media network partnership” arrangement that gives Pinterest even more room to run. With Google on its side, Pinterest will likely be better able to find advertisers for its unique brand of content. From there, that would help drive profitability and boost share prices as investors look to get a piece of the action. Erickson even went so far as to hike his price target on Pinterest to $30 from his original $26.
This news actually comes at a good time for Pinterest. While it’s clearly working to expand its revenue-generating capabilities, it’s also working to reduce its expenses. Back in December, Pinterest announced a load of layouts. Now, it’s also moving to end some of its office leases, which will continue lowering expenses. Further restructuring efforts are set to follow.
Analysts, however, clearly still have concerns. Pinterest has a Moderate Buy consensus rating, with Hold recommendations outweighing Buy by just over two to one. Also, with an average price target standing at $28.86, Pinterest stock only carries 3.72% upside potential.
