Pinterest (PINS) is scheduled to report results of its third fiscal quarter after the market close on October 27, with a conference call scheduled for 4:30 pm ET. What to watch for:

IMPROVED USER GROWTH TRENDS: On October 5, Goldman Sachs analyst Eric Sheridan upgraded Pinterest to Buy from Neutral with a price target of $31, up from $24. Although digital advertising landscape remains mired in "uncertain times," he is turning more positive on improved user growth and engagement trends for the company over the short and medium term, the analyst told investors in a research note. Sheridan added that he sees potential for upside to revenue growth trajectory and operating margin estimates moving into 2023/2024, stating that his recent analysis boosts his confidence in Pinterest's ability to grow monetization and capture a greater share of ad budgets as the company executes against its shopping and commerce opportunity.

ELLIOTT WANTS TO SEE A SALE: Activist investor Elliott Management now has a 9% stake in the Pinterest and wants to see the company accelerate efforts to monetize its base of 433M monthly users, or put itself up for sale, according to a person familiar with Paul Singer's demands, Barron's reported in September. "The fact that Elliott owns stakes in both PayPal (PYPL) and Pinterest has raised prospects of the hedge fund brokering a merger, though people close to both companies say a deal isn't on the table," the report added.

Also in September, Andrew Left's Citron Research said via Twitter, "PINS + GOOG Don't look now but look who has the hottest property on social media. Shuffles by Pinterest.... when looking at the facts, it is obvious why Google (GOOGL) will probably be a potential acquirer in the near future."

SIGNIFICANT RUNWAY: Wolfe Research analyst Deepak Mathivanan upgraded Pinterest to Outperform from Peer Perform with a $28 price target in September. The analyst believes the company has "significant runway" on both user growth and monetization over the long-term. In addition, Pinterest's pace of execution and progress on its long-term initiatives "should improve nicely" under new CEO Bill Ready, and the stock has "several positive catalysts" ahead including monthly active user growth, margin expansion, and product launches, Mathivanan said.

CIVIL RIGHTS PROBE: California's Civil Rights Department is probing Pinterest and has contacted former employee and whistleblower Ifeoma Ozoma as a potential witness, Protocol's Issie Lapowsky reported. The investigation comes two years after Ozoma and former Pinterest coworker Aerica Shimizu Banks alleged discrimination and retaliation at the company. "At Pinterest, we believe in fostering an open workplace culture where employees feel safe and empowered to raise any concerns about their work experience," LeMia Jenkins Thompson, CCO at Pinterest, wrote in a statement to Protocol. "The California Civil Rights Department is conducting investigations of a number of companies, and Pinterest is one of them."

EXPANSION OF MUSIC LIBRARY: Pinterest said in October that it formed new partnerships with Warner Music Group (WMG), Warner Chappell Music, Merlin, and BMG, to bring today's top artists and music on the platform. "Through these new deals, users will now be able to add tracks from Ed Sheeran, Silk Sonic, Anitta, and many more to their Idea Pins. This partnership expands Pinterest's existing royalty-free music library to include licensed popular tracks powered by 7Digital, the leading B2B digital music solutions platform, which will enable the Pinterest community to access a global catalog of music."

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