stockmarketwalk Pinterest share price surged sharply after the company edged out the expectation of user numbers, even as profit and revenue missed analyst’s expectation and the company gave a weak forecast for the third quarter.
Main figures in the second quarter:
- earnings per share (EPS) $0,11 compared to analyst’s expectation of $0,18
- year over year second-quarter sales increased by 9% to $665.9 million compared to analyst’s expectation of $667 million
- monthly active users declined by 5% from a year earlier to 433 million, which was still above the expectation of decline to 431 million
The better-than-expected user numbers surprised the investors, concerning the negative global trend in the social media market. Other social media companies like Meta, Twitter, or Snap all reported second-quarter results that missed the previous expectations on both the revenue and profit lines, and all attributed the disappointing results to a weak online advertising market.
More interesting is the company’s commentary on the third-quarter revenue grow “mid-single digits on a year-over-year percentage basis”. The company says the macroeconomic environment creates uncertainty for the advertiser partners. Additionally, the company highlights “lower than expected demand from U.S. big box retailers and mid-market advertisers, who pulled back ad spend due to concerns about weakening consumer demand.”
The biggest shareholder Eliott has ownership of over 9 percent in the company, its statement on the results:
As the market-leading platform at the intersection of social media, search and commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth
Since months, Pinterest has been put under significant pressure following the tendency of social media in the stock market. The share price has lost about 2/3 in its value over one year. On Monday it was traded around $23, however the share price is significantly fluctuating over the last few months
- 52 week high price $66
- 52 week low price $16,2
