Pinterest Lights a Fire Under the Social Media Sector
The COVID-19 pandemic crushed many social media stocks, as investors assumed companies would buy fewer ads throughout the crisis. Yet Pinterest (NYSE: PINS) recently defied those expectations with surprisingly robust guidance for its first quarter, which ended on March 31.
Pinterest expects its revenue to rise 33%-35% annually to $269 million to $272 million. It expects its monthly active users (MAUs) to grow 81%-82% to 365 million to 367 million. Within that total, it expects its MAUs in the U.S. to rise 5%-6% to 89 million to 90 million, and for its international MAUs to climb 34%-35% to 276 million to 277 million.
Pinterest didn't provide any bottom-line guidance, but noted that its cash, cash equivalents, and marketable securities rose 165% annually to $1.7 billion. It doesn't have any financial debt, and it hasn't drawn a single dollar from its $500 million revolving credit facility yet.
Source Fool.com
