Why Pinterest Stock Got Cut in Half During the First Half of 2022

Shares of Pinterest (NYSE: PINS) fell 50% during the first half of 2022, according to data provided by S&P Global Market Intelligence. To be fair, the S&P 500 was down over 20% during this time -- its worst start to a year since 1970. However, Pinterest has underperformed because investors haven't liked its financial results and doubt the prospects of its future direction.

Pinterest generates revenue by displaying advertisements to people browsing the images on its platform. Therefore, two of the most relevant metrics to an investment thesis are user growth and monetization growth.

Pinterest reported financial results two times in the first half of 2022. It reported results for the fourth quarter of 2021 on Feb. 3, showing a 6% year-over-year decline in its global monthly active user base. And it reported results for the first quarter of 2022 on April 27, which showed a 9% drop in global monthly active users.

Source Fool.com