Why Is Pinterest Stock Soaring? It Just Crushed Facebook in This 1 Key Metric
Pinterest (NYSE: PINS) shares were soaring after the image discovery engine reported second-quarter earnings Monday night. The stock closed the after-hours session up 21.4%, even though the results weren't particularly impressive. Revenue grew just 9% to $665.9 million, which was short of estimates at $667 million and the company's own guidance for 11% top-line growth.
Pinterest battled the same macroeconomic headwinds as the broader digital advertising industry, with nearly every competitor posting much slower revenue growth than a year ago because of difficult comparisons, a hangover from heady growth during the pandemic, and a slowdown in ad spending driven by recession fears.
On the bottom line, increased spending ate into profits, and the company finished the quarter with adjusted earnings per share of $0.11, down from $0.25 in the quarter a year ago, and below the analyst consensus at $0.18. Guidance was also underwhelming as management called for revenue growth of just mid-single digits in the third quarter, also below expectations of 13% top-line growth.
Source Fool.com
