Here's Why Pinterest Stock Plunged Today
Shares of image-browsing platform Pinterest (NYSE: PINS) plunged on Friday following its financial report for the fourth quarter of 2023. Pinterest stock was down 11% as of 10 a.m. ET, which is a big drop. But the market frankly doesn't appear to know how to react to its Q4 report. Shares had bounced all over the place in after-hours trading, from close to flat to down almost 30%.
On one hand, Pinterest's Q4 growth and guidance for the upcoming first quarter of 2024 were below Wall Street's expectations. On the other hand, growth is accelerating, the company announced a huge new partnership, and many analysts are raising their price targets for the stock today. If not for these positives, it seems that Pinterest stock would have plunged quite a bit more.
Regarding growth, Pinterest had nearly 500 million global monthly active users to end 2023. Moreover, Q4 revenue was up 12% year over year to $981 million. That's the company's fourth consecutive quarter of acceleration in its top-line growth rate. And guiding for Q1 revenue growth of at least 15%, it could hit a fifth consecutive quarter of acceleration.
Source Fool.com
