Pinterest stock got slammed after earnings. Here’s Why.

Tiger Newspress2021-07-30

Investors pummeled Pinterest stock in premarket trading, sending shares down more than 18% after the company reported its monthly active user (MAU) count declined in the second quarter, as pandemic restrictions began to lift around the world.

Pinterest said late Thursday that its MAU count fell by 5%, or roughly 20 million users, to 454 million compared with the first quarter. The image-sharing platform said its “engagement headwinds” have continued in July, and that as of Tuesday, its U.S. MAUs fell 7% compared with a year ago. Its global user count grew 5% in July compared with the year-ago period.

Pinterest CEO Ben Silbermann said stay-at-home orders in the past year helped drive engagement and usage of its platform. But now that economies around the world have begun to reopen, some of the behavior common a year ago during the height of the pandemic have changed—redecorating, home education, and cooking at home, for example—and aren’t as common, he said.

“For the past year, we’ve highlighted how people came to Pinterest for inspiration to reinvent their lives during such a difficult time,” he said. “Now, as the world opens up, we’re seeing the similar effect in the opposite direction.”

Pinterest said it would not issue third-quarter MAU growth guidance because restrictions due to the spread of Covid-19 continue to fluctuate.

Despite its sequentially declining user count, Pinterest topped analyst expectations for adjusted per-share profit and revenue.

The social media platform reported second-quarter net income of $69.4 million, which amounts to 10 cents a share, compared with a net loss of $100.8 million, or a loss of17 cents a share, in the year-ago period. Adjusted for stock-based compensation, among other things, earnings were 25 cents a share. Revenue more than doubled to $613.2 million.

Analysts had expected adjusted second-quarter earnings of 13 cents a share on revenue of $562.2 million.

Pinterest said that it expects third-quarter revenue to grow in the 40% range compared with a year ago, which is roughly in line with analyst estimates. For the third quarter, Wall Street expects non-GAAP earnings of 19 cents a share on revenue of $635.4 million.

Digital advertising companies have reported mixed results for the June quarter earnings season.Alphabet,Snap, and Twitter, handily beat expectations,sending shares flying.Facebook didn’t please investors when it reported earnings late Wednesday.

Pinterest stock had retreated 6% in the regular session Thursday to close at $72.04.

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Comments

  • randy126
    2021-08-06
    randy126
    In singapore we are still good despite covid Pls try bro sis
  • loveena
    2021-07-30
    loveena
    Buy
  • 飞机_Frankie
    2021-07-30
    飞机_Frankie
    ⬆️ 
  • Sriwonc
    2021-07-30
    Sriwonc
    Like and comment pls
  • PKsummer
    2021-07-30
    PKsummer
    Come on , the pandemic hasn't over yet and it's just starting second wave for the delta variant which is the biggest spreader as well as the lamda, why you as a CEO so optismistic about the open up. Don"t forget that Australia is locking down again and the Europe also cannot be spared as well as UK before Euro 20 started already accumulated 100 k infected people. Can't imagine that  the whole Europe will be coming second India. 
    • KH321ReplyPKsummer: 
      yes, this is my point. vaccinated people mild or no symptoms. not so affected. and vaccinations rate is increasing.
    • PKsummer: 
      sorry hor, those vaccinated also cannot be protected. worst its got no symptom at all from those vacinated.
    • KH321: 
      only those not vaccinated are affected by Delta. vaccinated people mostly OK.
    • KH321ReplyPKsummer: 
      be cool, my friend. govt not so concern because vaccinated people have mild to no symptoms. so lower chance of lock down that affects the economy and stock market.
    • PKsummerReplyKH321: 
      so you agreed with me that it will still spread. Now what do you mean by vaccinated people mild and not so affected? Infected means Infected, don't beat about the bushes.
  • mark01bravz
    2021-07-30
    mark01bravz
    Expected. Post-market already have this steep fall. Cannot wait for market to open and see how low it will go.
    • mark01bravzReplyLoneSurvivor: 
      yes and it depends on how much conviction u have in the stock that u are buying.
    • LoneSurvivor: 
      Hey daddy elon, you think what Is the lowest it will Go?
    • LoneSurvivorReplymark01bravz: 
      Very nice advice ?? so it all comes down to capital. if you gt the money, that would work
    • mark01bravz: 
      low can go lower. high can go higher. the only thing to do is dollar cost averaging.
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