Pinterest Expects to Get Back to Double-Digit Top-Line Growth Rates
It's been a tough environment for advertising. The visual-based idea discovery and sharing platform Pinterest (NYSE: PINS), which makes the bulk of its money from advertising, is a great example of a company hit hard by advertiser uncertainty.
The company's revenue growth slowed dramatically in 2022, and 2023 has remained lackluster. But investors should take a deep breath: At the company's Investor Day presentation this week, management said it thinks this slow growth is only temporary.
An upbeat update from Pinterest this week is both encouraging and timely. Piecing together a forecast for advertising spend during such an uncertain time is difficult. For this reason, most companies with business models generating the bulk of their sales from advertising revenue are trading well below their all-time highs, as investors brace for a wide range of potential business outcomes amid a high-interest-rate and inflationary environment.
Source Fool.com
