It wasn't the fiscal fourth quarter Pinterest (NYSE: PINS) shareholders were hoping for. Although earnings topped estimates, revenue fell short of expectations. Sales guidance for the quarter currently underway is also less than thrilling. The stock took a 5% tumble on Tuesday following Monday's post-close release of Q4's numbers.
Don't be too worried, though, if you own it or were thinking about buying it. There were a couple of key bright spots buried within Pinterest's quarterly earnings presentation. Namely, it's doing something other social networking platforms aren't doing right now.
It's an admittedly unusual social media site. Whereas Meta Platforms' Facebook and Twitter are seemingly designed to encourage online conversations that eventually devolve into bickering, Pinterest's sole shtick is organizing websites and digital images by "pinning" them onto virtual bulletin boards. Other like-minded users can follow one another to review their collections; they may well stumble onto something new they like, as Pinterest monetizes its users' bulletin board browsing by injecting the occasional advertisement into the mix.
For further details see:
Pinterest Missed Its Q4 Sales Estimates. Here's Why I Still Like It.