The stock of Pinterest (PINS) is down 10% after the social media company reported mixed second-quarter financial results.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The San Francisco-based company known for its digital pin boards announced earnings per share (EPS) of $0.33, which was below the $0.35 expected on Wall Street. However, revenue in the period totaled $998 million, which was ahead of the $975 million consensus expectation of analysts. Sales were up 17% from a year earlier.
Looking ahead, Pinterest said that its third-quarter sales will likely come in between $1.033 billion and $1.053 billion, which was ahead of analyst estimates of $1.025 billion. The social media company said it had 578 million global monthly active users in Q2 of this year, ahead of the 574.5 million that was projected.
Pinterest’s cash flow. Source: Main Street Data
Proud of Results
“I’m proud of our Q2 results — delivering 17% revenue growth and another quarter of record users,” said Pinterest CEO Bill Ready in the company’s earnings statement. “We’re also excited that Gen Z has grown to over half of our user base.”
This earnings season has been challenging for social media companies such as Pinterest. In recent days, Snap’s (SNAP) stock crashed 15% after that social media company, known for Snapchat, reported second-quarter earnings in which global average revenue per user missed Wall Street’s target. PINS stock is up 35% this year.
Is PINS Stock a Buy?
The stock of Pinterest has a consensus Strong Buy rating among 29 Wall Street analysts. That rating is based on 25 Buy and four Hold recommendations issued in the last three months. The average PINS price target of $42.76 implies 9.17% upside from current levels. These ratings are likely to change after the company’s financial results.
