What happened
Shares of visual search and media company Pinterest (NYSE: PINS) jumped on Friday. The stock rose as much as 11.1%, but shares were up about 5% as of 10:20 a.m. EST.
The growth stock's big gain follows a stronger-than-expected fourth-quarter report.
Image source: Getty Images.
So what
Pinterest announced fourth-quarter revenue of $706 million, up 76% year over year and crushing analysts' average forecast for revenue of $645.6 million. Adjusted earnings per share similarly beat analysts' estimates, coming in at $0.43, up from $0.12 in the year-ago quarter and $0.10 higher than a consensus analyst forecast for $0.32.
Monthly active users grew 37% year over year to 459 million.
Management cited "continued product innovation, execution, and an earlier and longer holiday season" as key reasons for Pinterest's strong performance.
Now what
Pinterest is optimistic about the future, with management guiding for first-quarter revenue to increase in "the low-70% range year over year." For some context, the company's fourth-quarter growth and its guidance for first-quarter growth are well beyond the 58% year-over-year growth rate Pinterest delivered in the previous quarter.
Find out why Pinterest is one of the 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
Tom and David just revealed their ten top stock picks for investors to buy right now. Pinterest is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of November 20, 2020
Daniel Sparks 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
