Pinterest's Best Growth Driver Just Skyrocketed 80% -- Is the Stock a Buy?
Wall Street does not have high hopes for advertising companies. For businesses that serve niche audiences -- like Snap -- investors fear ad spending will continue falling during the economic downturn as business spending tightens. With Pinterest's (NYSE: PINS) niche focus on creativity and inspiration, investors believed Pinterest would face similar struggles.
However, that was not the case. Pinterest's quarter was strong, highlighted by robust advertising demand on its platform around the world. Shares surged nearly 20% after the company reported earnings on Aug. 1. Did investors miss the boat with this pop, or is there still a chance to see impressive returns over the long term?
Pinterest's social media platform -- where users can go to find creative ideas and act on them with purchases -- saw healthy results worldwide in the second quarter. However, its international (all regions excluding Europe, the U.S., and Canada) performance was the primary highlight. Its average revenue per user (ARPU) soared 80% year over year for international users to $0.10. Additionally, monthly active users (MAUs) declined only 3% year over year, better than Europe's drop of 4% and the U.S. and Canada's decline of 8% over the same period.
Source Fool.com
