Pinterest (NYSE: PINS) posted its second-quarter earnings on July 29. The social media company's revenue jumped 125% year-over-year to $613.2 million, reflecting an easy comparison to the pandemic's initial impact on its ad business a year ago, and beat analysts' estimates by $51.1 million.
Pinterest generated a GAAP net profit of $69.4 million, compared to a net loss of $100.7 million a year ago. On a non-GAAP basis, it generated a net profit of $169.9 million, compared to a loss of $38.4 million a year earlier. Its non-GAAP earnings of $0.25 per share topped expectations by $0.12.
For the third quarter, Pinterest expects its revenue to grow in the "low 40% range" year-over-year, which matches analysts' expectations for 43% growth. Those headline numbers all looked healthy, yet Pinterest's stock plummeted after it released the report. Let's take a look at why investors dumped Pinterest, why they may have overreacted, and if the stock is still worth buying.
Source Fool.com