Why Pinterest Stock Popped on Wednesday
Shares of Pinterest (NYSE: PINS) popped on Wednesday after peer Snap, owner of the popular Snapchat app, reported earnings. Snap's results showed advertising demand was far ahead of expectations and that bodes well for Pinterest's ad-based revenue. Pinterest has yet to confirm the trend with its own results but investors expect good things all the same. As of 11:35 a.m. EDT, Pinterest stock was up 10%.
Snap stock also soared on after its Tuesday evening report. User growth was better than expected. But really, investors are cheering the platform's monetization improvements. Average revenue per user was $2.73 in the third quarter, up from the $2.12 in the year-ago quarter and trouncing analyst expectations of $2.27. Advertisers paused spending earlier in 2020, but Snap management said many are advertising again and some are even increasing their budgets.
Image source: Pinterest.
Source Fool.com
