Pinterest Stock Is Jumping After Earnings. Here We Go Again.

Pinterest $Pinterest, Inc.(PINS)$ shares surged in extended trading after the social media firm reported better-than-expected adjusted earnings.

The company reported non-GAAP net income of $68.99 million, or 10 cents a share, and revenue of $574.9 million. Analysts polled by FactSet were forecasting adjusted earnings of three cents a share and sales of $573 million.

Pinterest (ticker: PINS) said global monthly active users declined 9% year over year to 433 million, while Wall Street had expected 437.9 million.

Pinterest shares were up 7% in after-hours trading following the report—though that doesn’t mean such gains will stick. Since Pinterest went public in 2019, its shares have been especially prone to post-earning pops and drops. In the trading session immediately following an earnings report, Pinterest stock has moved—up or down—an average of 16%. Its smallest move was a gain of 5.3% when it reported 2020 fourth-quarter results. Its largest move was a gain of 36% when it reported June quarter results in July of 2020.

Though the stock has averaged a gain of 3% after earnings, its March quarter reports hadn’t fared so well. The stock fell following each of the prior three March quarter reports, averaging a decline of 14%.

“Despite a challenging macroeconomic and geopolitical environment, we grew revenue 18% year-over-year,” CEO Ben Silbermann said.

Investors were looking for insights into how macroeconomic trends may be impacting advertising. Russia’s invasion of Ukraine led advertisers to pull away temporarily from Snap $Snap Inc(SNAP)$ , the social media firm disclosed during its own earnings conference call last week. J.P. Morgan analyst Doug Anmuth speculated in a note last week that Pinterest may have fared better, given it is viewed as a brand-safe platform since advertisers have to worry less about controversial content on Pinterest.

For the second quarter, the company expects revenue will grow 11% year over year with non-GAAP operating expenses jumping 10% from the second quarter. The company expects full-year non-GAAP operating expenses to grow between 35% and 40% year over year, pointing to investments in content, user experience, shopping, and headcount.