Is This an Overaction to Pinterest Earnings?

Pinterest (NYSE: PINS) reported strong year-over-year (YoY) revenue growth. Unfortunately, investors are more concerned about the decline in monthly active users (MUAs) compared to the previous quarter. In today's video I look at fundamentals and recent earnings for Pinterest, and below I share a few highlights from the video.

  1. On July 29, after the market closed, Pinterest reported its second-quarter 2021 earnings. Pinterest revenue grew 125% YoY, driven by solid growth in its advertisement segment domestically and internationally. Pinterest did note that it expects a range of roughly low 40% YoY revenue growth for Q3 2021.
  2. Pinterest has stated that a good portion of the quarterly decline of MAUs are users who tend to browse Pinterest on the web instead of using the mobile application. Management indicated that web users tend to be less engaged and generate less revenue.
  3. In the long term, Pinterest is focusing on creating a more robust platform for content creators to increase the applications' engagement. One of those methods would be improving its short video content, which is already showing strong results.

Click the video below for my full thoughts and analysis.

*Stock prices used were the premarket prices of July 30, 2021. The video was published on July 30, 2021.

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Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Pinterest. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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