After seeing Meta Platforms' quarter, investors would be forgiven if they expected dreadful results from another social media company, Pinterest (NYSE: PINS). However, that's not what Pinterest reported for the third quarter, causing its stock to rise nearly 15% the day after reporting.
With the stock still down over 70% from its all-time high, could this be the quarter that turns around Pinterest's stock?
Social media companies derive most of their revenue from advertisements on their platform. While social media companies haven't been around for many recessions, the general trend is that companies slash their advertising budgets in these times to reduce expenses. Meta Platforms saw its revenue decline in Q3, but Pinterest kept growing.
Source Fool.com