Pinterest's (PINS) appointment of James Dibbo as chief financial officer fits the company's push to become a bottom-funnel, performance-driven ad platform, Wedbush said in a note Tuesday.

The brokerage said Dibbo's experience scaling Amazon Ads, one of the largest retail media and performance advertising businesses, lines up with Pinterest's priorities, including automation, better bidding and measurement, and steady spend from large retailers.

His familiarity with large retail advertisers should also help as Pinterest looks to extend its go-to-market approach to other regions, Wedbush said.

Wedbush called the external hire constructive but said it doesn't expect the change to affect Q3 results or near-term guidance. The firm said it will listen for Dibbo's early priorities on the Q4 call, particularly on capital allocation, operating expense and stock-based compensation discipline, and long-term margin targets.

Wedbush maintained its neutral rating on the stock with a $24 price target.

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