BullnBearTrading wrote a post · Nov 8, 2024 11:15

Pinterest Shares Slide on Weak Q4 Guidance Despite Strong Q3 Earnings

$Pinterest (PINS.US)$’s stock dropped by 15% after the company shared a cautious Q4 revenue outlook, overshadowing better-than-expected Q3 results.

Q3 Highlights:

Revenue: $898 million, slightly above the $896 million forecast.
EPS: 40 cents (adjusted), beating the 34 cents expected.
Active Users: 537 million globally, topping estimates of 532.6 million.
Net Income: Up 354% year-over-year, reaching $30.56 million.

Challenges Ahead:

Pinterest projected Q4 revenue in the range of $1.125 billion to $1.145 billion, with a midpoint below analysts’ estimates.
CFO Julia Donnelly noted continued pressure from the consumer packaged goods sector, especially food and beverage advertisers, which has slowed ad revenue and is expected to persist into Q4.

Strategic Moves:

Share Buyback: Pinterest’s board authorized a $2 billion share repurchase, which could offset some investor concerns.
Investments in AI and R&D: Rising expenses were attributed to tech investments and hiring, aimed at enhancing Pinterest’s ad platform and user experience.
Despite strong user growth and quarterly revenue gains, cautious Q4 expectations weighed heavily on the stock.

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