Pinterest interest plummets on poor Q2 resultsPinterest ended last week among TradingView’s top losers, down 18% on Friday after reporting a decline in monthly users and sinking a further 3% on Monday to close at $57.12.
Social media service Pinterest saw its shares plummet 18% after its Q2 earnings release, which reported a slowdown in the popularity of the platform as monthly users decline. The drop came despite the company beating on both the top and bottom lines, reporting earnings per share of $0.25 on revenue of $613 million, compared to expectations of $0.13 in earnings per share on $562.1 million in revenue. Revenue grew 125% from the same period the year before, thanks to solid advertising revenue. It was the monthly active user numbers that brought the stock down, coming in at 454 million compared to the 482 million analysts were looking for and down 5% from Q1 levels of 478 million. Its monthly active users have declined by around 7% in the U.S. and around 5% globally.
Social media companies have soared in popularity through the pandemic, but as the world opens back up the worry is that the gains could be on their way out. Pinterest is hoping to create a more robust and engaging platform in the future and has made moves in that direction already, with a new TikTok-esque short video feature released in May, which is already seeing impressive growth.
said CEO Ben Silbermann.
The stock fell to its lowest price since mid-May, ending the Friday down 18.24% at $58.90, down from its peak of $89.90 on February 16.