Why Pinterest Stock Bounced Over 3% Higher Today
Shares of visual search and social media site Pinterest (NYSE: PINS) were up 3.3% today as of 2:35 p.m. ET. It's a small but much needed relief rally for the internet company. The stock is down 41% over the past three-month stretch alone as the mood has soured on Pinterest's prospects for average user and engagement growth.
Besides the last quarterly financial update provided in November, interest rates have been what's eating Pinterest's stock. While it's still a richly valued business even after enduring an absolute drubbing in 2021, the U.S. Federal Reserve has indicated higher interest rates are in order this year to try and tame inflation. Higher interest rates lower the present value of a stock, especially premium-priced ones like Pinterest that assume business will continue to expand at a rapid rate for many years to come.
Image source: Getty Images.
Source Fool.com
