Pinterest (PINS) stock sank late Tuesday after the social media company reported third-quarter earnings below expectations. User growth for the digital pinboard operator came in ahead of Wall Street’s forecasts but revenue was only in-line with estimates.
The San Francisco-based Pinterest reported adjusted earnings of 38 cents per share for its September-ended quarter. Analysts polled by FactSet were projecting earnings of 42 cents per share. Revenue increased 17% to $1.05 billion, in-line with expectations.
Monthly active users for Pinterest increased 12% year-over-year to 600 million, sharply ahead of estimates for 590.3 million.
“Our investments in AI and product innovation are paying off,” Chief Executive Bill Ready said in a news release. “We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million consumers.
For the current quarter, Pinterest guided for sales of $1.33 billion at the midpoint of its range, just below expectations of $1.34 billion.
Pinterest Stock Dives
On the stock market today, Pinterest stock fell more than 15% 27.88 in late trades.
Before earnings, Pinterest fell 2.3% in Tuesday’s regular session. Pinterest shares closed trading Tuesday ahead 13.5% overall year-to-date, slightly underperforming a 15% gain for the S&P 500.
Coming into the report, Pinterest stock had an IBD Composite Rating of 93 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
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