Key Stats for Pinterest Stock
- Price Change for Pinterest stock: -13%
- Current Share Price: $34
- 52-Week High: $41
- PINS Stock Price Target: $42
What Happened?
Pinterest (PINS) stock dropped more than 12% despite reporting mixed second-quarter earnings results.
While the social media platform beat revenue expectations with $998 million versus the $975 million analysts expected, it fell short on earnings per share, delivering $0.33 adjusted versus the $0.35 expected.
Pinterest delivered solid fundamentals elsewhere, posting 17% revenue growth year-over-year and reaching a record 578 million global monthly active users, ahead of the 574.5 million projected.
Pinterest also provided optimistic third-quarter guidance, forecasting sales between $1.033 billion and $1.053 billion, which topped analyst estimates of $1.025 billion.
However, CFO Julia Donnelly cited ongoing advertiser concerns about tariffs and “broader market uncertainty” that continue to impact spending decisions.
Notably, Asia-based e-commerce retailers have pulled back U.S. spending tied to changes in trade regulations, creating headwinds for the platform’s monetization efforts.
See analysts’ growth forecasts and price targets for Pinterest (It’s free!) >>>
What the Market Is Telling Us About PINS Stock
The sharp sell-off in PINS stock suggests investors are prioritizing the earnings miss and advertiser uncertainty over Pinterest’s strong user growth and revenue beat.
The market reaction to PINS stock appears harsh given that Pinterest achieved record user levels and continues to see strong engagement, especially among Gen Z users who now represent over 50% of the platform’s user base.
Pinterest’s decline also comes amid broader weakness in social media stocks, with Snap stock having plummeted over 15% earlier this week following its own disappointing earnings report.
The market may be closely watching social platforms’ ability to navigate current advertising headwinds and convert user growth into sustainable revenue growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
