Key Stats for PINS Stock
- Today’s Price Change: 13%
- Current Share Price: $31
- 52-Week High: $45
- Analysts’ Price Target: $40
What Happened?
Pinterest (PINS) stock is up almost 13% today after the social media company reported first-quarter earnings that exceeded revenue expectations and provided stronger-than-expected guidance for the upcoming quarter, despite missing on earnings per share.
In Q1, Pinterest reported revenue of $855 million, surpassing consensus estimates of $846 million. However, adjusted earnings-per-share came in at $0.23, below the $0.26 expected by analysts.
Pinterest’s second-quarter revenue guidance of $960-980 million (midpoint $970 million) exceeded Wall Street expectations of $966 million, which ended up being a catalyst for the rally in $PINS stock.
Pinterest reported 570 million monthly active users in the first quarter, ahead of estimates of 565 million.
Adjusted EBITDA came in at $172 million, beating Wall Street’s estimate of $164 million. The EBITDA margin reached 20%, slightly above the expected 19.4%. Global average revenue per user was $1.52, matching analyst expectations.
While revenue from the U.S. and Canada slightly missed expectations at $663 million versus $664 million projected, European revenue outperformed at $147 million compared to the $141 million forecast.
See Pinterest’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The positive market reaction to PINS stock reflects investor relief and optimism amid a challenging macroeconomic environment where many tech companies have cautioned about future performance.
Pinterest’s ability to provide solid forward guidance stands in contrast to companies like Snap (SNAP), which declined to provide guidance due to macroeconomic uncertainties.
Additionally, other digital advertising companies, like Meta (META) and Alphabet (GOOGL), have cautioned about headwinds to their advertising businesses, particularly from Asia.
That makes it all the more impressive that Pinterest performed well.
CFO Julia Brau Donnelly acknowledged during the earnings call that while Pinterest is “not immune to the macro environment,” executives remain optimistic about its advertising products and overall business health.
She noted “small pockets of spend that have been impacted by tariffs in recent weeks,” specifically mentioning that some Asia-based e-commerce retailers have reduced their digital advertising spending.
CEO Bill Ready emphasized the company’s successful transformation “from a platform with declining users and modest revenue growth a few years ago into a secular share taker with a more resilient business than ever before.”
His assertion that “Pinterest is where Gen Z goes to shop” highlights the company’s strategic focus on becoming a shopping destination rather than just a social media platform.
This strategic positioning resonates with investors, as Pinterest demonstrates resilience in user growth and advertising revenue despite broader market challenges.
Find the best stocks to buy today that are even better than Pinterest. (It’s free) >>>
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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!
