In his second "Executive Decision" segment of Friday's Mad Money program, Jim Cramer sat down with Ben Silbermann, CEO of Pinterest, Inc. (PINS) , the online discovery service and recent IPO that saw its shares fall 13.4% after reporting its first quarterly earnings as a public company.
Silbermann said despite now being public, he remains focused on Pinterest's users and providing them the best experience possible. He said Pinterest is not about keeping up with friends or following celebrities, it's about users and their interests, and discovering new ideas whether it be for meals, clothing or home remodeling.
Silbermann added that Pinterest is also a business suite of simple tools that allow businesses to share in the discovery process through advertising. He said the two goals don't have to conflict with each other, then can grow in harmony, which was seen by the company's 26% growth in revenue per user. Pinterest is unique in its visual nature, Silbermann said. Most people can't explain their clothing style or their favorite living room with just a few keywords, but if they see it on Pinterest, they will instantly know what they like and be able to save and share it.
Let's check out the limited chart and indicator history.
In this daily candlestick chart of PINS, below, we have limited history but we can still glean some information. Prices rallied for seven sessions (white real bodies) and then we have a large dark cloud cover (red candle pattern) which marks a reversal to the downside.
On Friday the upper shadow tells us that the price rally that day was rejected.
On a short-term basis the daily On-Balance-Volume (OBV) line has begun to weaken signaling more aggressive selling. We can also see two overbought sell signals.
In this limited Point and Figure chart, below, we can see prices in a column of bearish "O's" with a new low for the move down.
Bottom line strategy: New issues are a problem for technical analysts who depend on price history to draw conclusions. PINS has been weakening this month and is likely to dip still lower in the weeks ahead. A rally to $32 is needed to turn the charts more positive.