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Pinterest shares plummet 15% on earnings miss, weak forecast
Pinterest's Q3 revenue rose 17% to $1.05 billion but missed earnings per share estimates, with a cautious Q4 revenue forecast below Wall Street expectations, causing a 15% stock drop.
- On Tuesday, Pinterest shares plunged about 15% in extended trading after the third-quarter report, erasing the company's gains for the year.
- Adjusted results showed an EPS shortfall with 38 cents versus 42 cents expected, and the company forecast fourth-quarter revenue between $1.31 billion and $1.34 billion, trailing the $1.34 billion StreetAccount projection.
- Revenue and user metrics showed contrasting signals as Pinterest's revenue grew 17% to $1.05 billion while monthly active users reached 600 million and ARPU was $1.78.
- Industrywide ad spending strengths heightened competition for Pinterest as Meta, Alphabet and Reddit showed robust ad sales last week, while TikTok and Meta's Instagram and Facebook remain top marketer choices.
- The company highlighted AI-driven product moves as Bill Ready said, `Our investments in AI and product innovation are paying off`, while noting Asia-based e-commerce retailers shifted budgets after the U.S. de minimis duty-free import provision ended.
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11 Articles
11 Articles
Pinterest's weak revenue forecast signals intense competition for ad dollars
Pinterest forecast fourth-quarter revenue slightly below Wall Street estimates on Tuesday, signaling fierce competition from larger platforms such as Meta during the holiday shopping season, sending its shares down over 15% in extended trading.
·United Kingdom
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Pinterest Projects Weak Holiday-Quarter Sales, Shares Tumble
Pinterest Inc. projected revenue for the current quarter that fell short of analysts’ estimates, a sign that the search platform’s advertising business may not be growing as quickly as expected despite the upcoming holiday shopping season. The stock plunged as much as 19% in after-hours trading.
·United States
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Total News Sources11
Leaning Left3Leaning Right1Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
Factuality
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