U.S. stocks settled higher on Friday, with the Dow Jones and S&P 500 recording their best week in the year following the election of Donald Trump as the 47th U.S. president.
Pinterest's Q3 FY24 earnings showed 18% YoY revenue growth and 31% YoY Adjusted EBITDA growth, driven by increasing MAUs and advertiser spend. However, investor confidence dropped due to declining ad pricing in international markets and concerns over AI investments impacting profitability, but I see these as temporary issues. I believe its long-term growth story is alive from growing Gen Z user base and AI-driven user engagement improvements, which should result in higher advertiser spend, supporting a price target.
Pinterest's Q3 update showed strong fundamentals with 11% user growth and 18% revenue growth, yet the stock fell 16%, presenting a buying opportunity. CEO Bill Ready's focus on AI and platform enhancements has driven significant engagement and monetization improvements, especially among Gen Z users. Due to the price drop and earnings growth, Pinterest's Owner's Yield has increased to 11.7%, indicating strong potential returns with continued revenue growth and efficient R&D spending.
Investors clearly had their hopes pinned on a better forecast for Pinterest when the company announced its Q3 2024 results and Q4 forecast yesterday.
Pinterest stock sank after its sales guidance underwhelmed. Analysts remain bullish on Amazon and Google partnerships.
Pinterest (PINS) shares slumped about 16% Friday morning after the social media company's third-quarter net income fell short of estimates.
Advertisers still don't seem to be taking to this platform as hoped.
Pinterest reports a top-line expansion year over year, driven by solid user engagement across all regions.
Pinterest (PINS) shares slumped Friday morning after the social media company's third-quarter net income fell short of estimates despite a narrow revenue beat.
Pinterest (PINS) shares are falling premarket after the social media stock issued weaker-than-expected revenue guidance. Meanwhile Airbnb (ABNB) says it is seeing "strong demand," but investors are selling the stock after an initial pop on Thursday.
Pinterest's Q3 earnings beat expectations, but sluggish U.S. user growth and declining ad pricing led to a >10% drop after-hours. I am downgrading Pinterest to a sell due to weaker user growth, lack of a competitive moat, and potential negative impacts from increased ad load. Despite 18% y/y revenue growth, ad pricing fell 17% y/y, raising concerns about the sustainability of Pinterest's monetization strategy, especially overseas.
Shares in the social-media platform are already down 8% this year, as of Thursday's close.