Pinterest Stock Soars 17% on Earnings Beat and Rosy Outlook
Pinterest (NYSE: PINS) delighted investors when it reported fourth-quarter and full-year 2019 results after the closing bell on Thursday. Shares skyrocketed 17% in after-hours trading on Thursday, suggesting that the visual-forward social media company's performance on Friday could make for one pin-worthy stock chart.
We can attribute the market's pleasure, in part, to both fourth-quarter revenue and adjusted earnings beating Wall Street's consensus estimates, as well as Pinterest's revenue guidance. (The company doesn't provide earnings guidance.) But the bigger catalyst was surely the much-better-than-anticipated 2020 revenue outlook.
Oh, what a difference a quarter makes! Last quarter, investors pummeled Pinterest stock nearly 20% after it released its results, because revenue fell short of analysts' expectations and full-year 2019 revenue outlook was lighter than many had been anticipating. As I wrote at that time, I thought the market "overreacted a bit, as one quarter doesn't make a trend and it's likely the company lowballed its revenue guidance to be on the safe side."
Source Fool.com
