Pinterest shares slump after forecasts misses estimates

By Thomson Reuters Feb 8, 2024 | 3:08 PM

(Reuters) – Pinterest forecast first-quarter revenue largely below Wall Street estimates on Thursday, a sign that it faces tough competition from larger social media players even as the digital advertising market stabilizes.

Shares of the San Francisco, California-based company fell more than 11% in extended trading.

Pinterest faces competition from the likes of TikTok and Meta Platforms-owned Facebook and Instagram, which have become the go-to platforms for advertisers in an uncertain economy because of their more extensive user base and higher engagement for target ads.

Snap missed Wall Street estimates for quarterly revenue earlier in the week, as the Snapchat owner has also struggled to compete against larger rivals for digital advertising dollars.

The image-sharing platform expects revenue for the quarter ending in March between $690 million to $705 million, the mid point of which is below analysts’ average estimate of $702.6 million, according to LSEG data.

Global monthly active users (MAUs) on the platform, which lets users create online pinboards, rose by 11% to 498 million in the fourth-quarter compared with estimates of 484.5 million.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)