Pinterest Stock's Post-Earnings Drop Is a Buying Opportunity
Pinterest (NYSE: PINS) reported strong first-quarter 2020 results after the closing bell on Tuesday, April 27. However, shares of the image-discovery platform operator are down 12.2% on Wednesday, as of 10:56 a.m. EDT.
We can attribute the market's initial negative reaction to year-over-year user growth slowing in the United States, and the company's guiding for this dynamic to continue in the second quarter. This slowing -- which was to be expected -- is being driven by the easing of COVID-19 pandemic restrictions in the country, which is resulting in people spending less time online.
That said, there was much to like in the report: Both revenue and earnings beat Wall Street's expectations, and the company's second-quarter revenue guidance came in higher than the analyst consensus estimate. Moreover, advertising rates across the world are rebounding strongly.
Source Fool.com
