With most analysts expressing a need to see proof of execution, Pinterest still has a firm ‘hold’ consensus rating. Pinterest has its work cut out for it, but with a prominent activist involved and former Google executive Bill Ready as the new CEO, signs of a potential turnaround are forming.īut while traders are more excited, Wall Street has thus far taken a cautiously optimistic stance. As the company’s biggest investor with a nearly 10% stake, Elliott has helped breathe new life into a stock generating unlikely interest from institutional and retail investors alike. Despite the weak current advertising market, Elliott has recently expressed great “conviction” in Pinterest saying that “value-creation” opportunities lie ahead. What has overshadowed the recent results and soft Q3 guidance, however, is activist investor Elliott Management’s big stake in the company. Revenue and monthly average users (MAU) exceeded consensus estimates but earnings fell well short. On August 2nd, the stock gapped up 12% in strong volume after the crafty social media platform posted mixed second-quarter performance metrics. ( NYSE: PINS) again after a prolonged downturn erased its enormous pandemic-driven gains.
The market is finally showing interest in Pinterest, Inc. Based on this inelastic demand and mobile ordering trends, the Street is projecting a third quarter earnings growth acceleration to 30%, which could keep investors interested in the stock for at least the next few months. After a lukewarm Q1, profitability appears to be sizzling again with loyal customers showing a willingness to pay more. Last week it closed above $1,600 for the first time since April 2022 as buyers mimicked the recent traffic flow at Chipotle’s more than 3,100 locations. The high volume move has helped the stock recoup much of its recent losses. Chipotle saw an uptick in digital orders in the quarter as more consumers turned to third party delivery apps like Grubhub and UberEats to satisfy their southwestern food cravings. Although sales fell short of forecast, an improved operating margin that reflected higher menu prices and lower delivery fees led to the outperformance. Second quarter adjusted earnings per share rose 25% and beat the consensus forecast by a wide margin. It was déjà vu for the quick service burrito chain operator.
That move ultimately propelled the stock to an all-time high near $2,000 before it dipped below $1,200 earlier this summer. The 1.4 million shares traded that day matched what we saw in July 2021 when the company delivered a big second quarter earnings beat. ( NYSE: CMG) jumped 15% on July 27th in more than five-times its 90-day average volume.
Why Did Chipotle’s Trading Volume Spike?Ĭhipotle Mexican Grill, Inc. Last week the stock climbed to a 52-week high of $10.69 with daily volume remaining well above average. Based on the momentum in Teva since the news, the market thinks there’s a good chance that the proposal will be accepted. Let’s tune into a few examples.įrom an investment standpoint, a resolution would lift an ominous cloud of uncertainty that has been hanging over the stock since 2016. In recent days, there have been a bunch of interesting high volume up days that have reinvigorated weakened stocks. There are countless historical chart examples of high-volume moves that mark the beginning of sustained rallies or slumps. If it's not a one-time fluke, this can lead to an extended uptrend or downtrend because more people follow the stock. They want to know what’s behind it-and what lies ahead. When investors see a big volume spike on a chart, curiosity swells. It is often caused by a major news headline, a big institutional transaction, or heavy retail trading interest. Volume, the number of shares that exchange hands in a given time period, signals how much interest a stock is generating. When the volume gets raised at a summer music festival, concertgoers’ ears perk up.
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