PINS - Pinterest: Tailwinds In Multiple Areas

2024-05-12 12:34:31 ET

Summary

• Pinterest's Q1 earnings report exceeded expectations, leading to a renewed rally in the stock.
• Despite competition in the social media space, Pinterest continues to grow its user base both domestically and abroad.
• Revenue growth accelerated more than ten points to 23% y/y in Q1, and the company is expected to hover in a ~20% growth range in Q2 as well.
• Profit is also soaring, as Pinterest is managing to hold expense growth materially below revenue growth.

For the most part, the ongoing Q1 earnings season has dealt a lot of disappointments to tech stocks, where investors are seeking reasons to hold onto companies with elevated valuation multiples amid persistently high interest rates. A rare outlier here is Pinterest ( PINS ), the social media company that emphasizes "pinning" topics of interest. A smaller player in the U.S. social media space, Pinterest continues to grow its user base both domestically and abroad, and a strong Q1 earnings print sent the stock flying more than 20%, erasing earlier losses....

For further details see: