Pinterest app on mobile
Revenue miss and soggy guidance sees stock slump more than 9% after-hours / Image source: Adobe
  • Revenue miss and soggy guidance
  • Stock slumps more than 9% after-hours
  • Online advertising recovery is splitting

Social media platform Pinterest (PINS:NYSE) lost nearly 10% of its value in after-hours trading overnight as it became the latest in a run of internet stocks that bank on online advertising to spook the market.

Pinterest, a sort of visual discovery engine for finding ideas like recipes, home and style inspiration, and more, missed fourth quarter (to 31 Dec) revenue expectations and issued soft guidance for the March quarter.


While the company posted earnings per share of $0.53, beating the consensus estimate of $0.51, its revenue of $981.3 million fell nearly $10 million shy of consensus pitched at $990 million. Adding to the market’s worries was soft Q1 guidance. Pinterest anticipates Q1 revenue to come in somewhere between $690 million and $705 million, hinting that hitting analyst consensus of $702 million will be tough.

Five small cap stars to buy today

At least user numbers are going the right way, with monthly active users in Q4 up 11% to 498 million, topping analyst estimates of 487 million. Yet even this silver lining came with the cloud that global average revenue per user was weak, at $2 versus analyst estimates of $2.05.


The main concern for investors is that in a broad recovery in the online advertising market, some are winning while others are not, and Pinterest may be in the wrong camp.

Meta Platform’s dividend call stuns the market

For example, Meta Platforms (META:NASDAQ), Alphabet (GOOG:NASDAQ) and Amazon (AMZN:NASDAQ) all saw their ad units grow by double digits in Q4 2023.

By contrast, Snap (SNAP:NYSE) shares cratered 35% on Wednesday (7 Feb) after the company reported Q4 sales growth of 5%, trailing expectations, and the company also issued weak guidance.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJBell logo

Issue Date: 09 Feb 2024