Should You Really Buy the Dip on This Beaten-Down Stock?
Pinterest (NYSE: PINS) shares have been nearly cut in half this year. Apple's privacy setting changes have negatively affected social media stocks, but additional issues cut much deeper. Here's why things could get even worse for Pinterest.
Before changes made by Apple to its privacy settings, social media platforms like Pinterest could glean an astonishing amount of data from each user. The data could be used to pinpoint ad campaigns more accurately than traditional media platforms like TV and websites -- advertisers flocked to the new format. Since Apple's April 2021 privacy setting changes, social media platforms' ability to collect user information has been hamstrung.
It took time for Apple's privacy settings to hit Pinterest, but by its third-quarter 2021 earnings, revenue growth had fallen to 43% from 125% in the second quarter. Revenue growth in the fourth quarter of 2021 again slumped to 20%, then 18.5% in the first quarter of 2022.
Source Fool.com
