Investors should pull back from Pinterest after the company's user numbers went backward in the second quarter, according to JPMorgan. The stock price was down 19% Friday. The social media company beat expectations on the top and bottom lines for its second quarter, but its 454 million monthly active users were down from the prior period and well below analyst expectations. Shares tumbled 21% in premarket trading. JPMorgan analyst Doug Anmuth downgraded the stock to neutral from overweight, saying in a note to clients Friday that the user growth concerns would be too much for the stock to overcome in the short term. "PINS delivered solid revenue growth amid high expectations for 2Q, but the magnitude of the MAU miss, disappointing 3Q outlook, & uncertainty around the shift to more of a creator platform are likely to keep pressure on shares [near-term]," the note said. Additionally, Pinterest's push toward its Idea Pins video program could also lead to short-term struggles, Anmuth said. As part of the downgrade, JPMorgan slashed its price target for Pinterest to $68 per share from $95 per share. The new target is more than 5% below where the stock closed Thursday. Anmuth was not the only analyst to cool on Pinterest after the report. Evercore ISI's Mark Mahaney downgraded Pinterest to in-line from outperform and cut his price target to $60 per share from $98. -CNBC's Michael Bloom contributed to this report.
A Pinterest banner hangs on the facade of the New York Stock Exchange (NYSE) in New York City, September 22, 2017
Brendan McDermid | Reuters
Investors should pull back from Pinterest after the company's user numbers went backward in the second quarter, according to JPMorgan. The stock price was down 19% Friday.