Pinterest Inc (NYSE:PINS) shares are down 7.5% to trade at $23.97 at last glance, after the social media platform announced, in a securities filing, plans to lay off about 15% of its workforce to allocate resources to roles and teams focused on artificial intelligence. The company will also cut back on office space, with changes expected to go into effect in the third quarter.
PINS is on track for its worst day since November, as it trades at its lowest level since April. The security has struggled with overhead pressure from the 60-day moving average, which turned away rallies earlier this month, as well as in October and November. Year over year, PINS is down 27%.
The security looks ripe for bear notes, with 26 of the 35 analysts in coverage sporting a "buy" or better rating. Plus, the 12-month consensus target price of $36.42 is a 52.2% discount to current levels.
An unwinding of optimism in the options pits could pressure Pinterest stock even lower. This is per the equity's 50-day call/put volume ratio of 4.96 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 96% of annual readings.
It's also worth noting PINS' Schaeffer's Volatility Scorecard (SVS) sits at 87 out of 100, suggesting it has consistently realized higher volatility than its options pits have priced in.
