Pinterest's stock slips but pares overnight losses after analyst says Facebook 'copycat' is not a concern

Pinterest's stock slips but pares overnight losses after analyst says Facebook 'copycat' is not a concern

Shares of Pinterest Inc. PINS, -1.15% slipped 0.8% in morning trading, paring overnight losses of as much as 5.4%, after Wedbush analyst Ygal Arounian tried to assuage investors fears by saying Facebook Inc.'s FB, +0.13% upcoming "copycat" app was "not quite that, and not a major concern." The social media company's stock sold off in after-hours trading Thursday, amid multiple reports about Facebook's experimental app called "Hobbi," which Facebook calls a "the one stop app for your personal projects." Arounian said the after-hours selloff was an "overreaction," as the app seems to be more of an "interest app" centered around taking pictures and saving them to specific categories, while Pinterest is a "significantly more complex product" that aims to drive discovery and inspiration from billions of pictures. "We don't see [Hobbi] as a meaningful risk to Pinterest, and certainly see no risk to our 2020 estimates," Arounian wrote in a note to clients. Pinterest's stock has run up 19% over the past three months, while Facebook shares have advanced 11% and the S&P 500 SPX, -0.04% has gained 9.1%.


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