Why Pinterest Stock Soared on Friday
Shares of image-focused social media platform Pinterest (NYSE: PINS) soared on Friday following the release of its third-quarter financial results. Revenue was up, the overall user base was slightly up, and management said it expects growth for the remainder of the year. Those results surprised investors, who bid the stock up by 11.8% as of 11:14 a.m. ET.
Pinterest ended Q3 with 445 million monthly active users globally, up just slightly from the 444 million it had in the same quarter last year. However, the company's average revenue per user continued to climb. Consequently, its revenue rose by a more robust 8% year over year.
Pinterest had been experiencing a steady decline in active users in recent quarters, so it's understandable that the market celebrated its return to active user growth. However, there are a couple of more troubling trends for investors to be aware of.
Source Fool.com
