Furthermore, given the projections of moderate growth in the coming year, to some it may seem like shares have just about bottomed out. Why a Rebound May Prove Tough for Pinterestīack down to near what it traded for at the start of the 2020 lockdowns, it may seem like PINS stock has little more room to fall from here. Nevertheless, it may signal little confidence that a comeback is in store. Perhaps not to the degree seen in prior months. Since then, shares have continued to slide. However, this positive reaction did not last long. The market was also satisfied with its guidance update, which called for revenue growth in the high teens this quarter. Adjusted earnings per share (EPS) came in at 49 cents, above estimates calling for 45 cents. Actual revenue came in at $847 million, above estimates calling for $827.5 million. Instead, they were satisfied with its revenue and earnings beats. Even so, investors weren’t too concerned. active users fell by 12%, from 98 million to 86 million. Year-over-year (YOY), global users fell by 6%, from 459 million to 431 million users. MAUs may have dropped again during the December quarter. 3, the market had a more positive reaction when it came to PINS stock. That said, with its most recent quarterly earnings release on Feb. Namely, falling monthly active users (MAUs), which many saw as a hit of slower growth ahead in the post-pandemic era. Instead, it was due to discouraging user trends. But not so much with the revenue and earnings numbers themselves. Throughout last year, disappointment with its quarterly earnings results helped to drive Pinterest’s continued price declines. With this, it’s better to stick to tech names, beaten down lower in recent months, that have far less uncertainty. Still, despite beating expectations with its earnings release, that’s far from a guarantee that it’ll not disappoint in the quarters ahead. Analysts project moderate levels of revenue and earnings growth in the coming year. Add in the tech selloff starting in November, and it’s no surprise that the stock has come full circle - with the wild ride that took it near $100 per share taking it back down to $25 per share.Īdmittedly, this is not a “bad company,” in the sense that it has a big hurdle it needs to overcome. Yet, once these rumors faded away, the long slide back to lower prices continued. Takeover rumors, which are still surrounding it, drove a short-lived attempt to rebound last fall. Realizing it overestimated how much the company’s novel coronavirus pandemic tailwinds would last, the market steadily re-adjusted Pinterest’s valuation. All Rights Reserved.Source: Nopparat Khokthong / īut since the start of the “recovery,” it’s been all downhill. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
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