Yahoo Finance Live discusses a dip in Pinterest stock despite revenue coming in higher than expected, and details the implications on the broader social media market.
Video transcript
SEANA SMITH: I also want to take a look at Pinterest here because we just got numbers from them. And that stock is also under pressure, looking at a drop of just about 7% here. Revenue coming in better than expected, 602.6 million. EPS looks like it was also a beat. But average revenue per user, that was actually declined on a quarterly basis here, dropping just about 1%, also slightly missing the Street's expectation here.
The company also saying that it does see 2Q revenue growth in-line with the past quarter, the first quarter here, and the fourth quarter. So that guidance there could be one of the reasons why we're looking at shares under pressure here for Pinterest. And also, when you take a look at some of their global monthly active users numbers, that did increase by just about 7%.
But again, Pinterest obviously has also been weighed down by weakness in the advertising market. So Pinterest and Snap both declining today.
DAVE BRIGGS: Is this Mark Zuckerberg appreciation moment?
- [LAUGHS]
DAVE BRIGGS: I mean, listen, they have been-- everyone talks about the year of efficiency. But truly, it was the year of engagement if you look at their quarterly report. Their engagement numbers were up we're up the board. And now we're looking at Pinterest and Snap, in the same environment, struggle. Yeah, I'm--
SEANA SMITH: So, it's interesting-- no, sorry, I didn't mean to cut you off there. But it's interesting that you bring up engagement. And I meant to bring this up when I was doing this report. But Brian Sozzi actually spoke with the CEO of Pinterest, Bill Ready. And he did say they were seeing progress when it does come to engagement.
What he exactly said was that they do see strong engagement trends and that engagement with users is growing pretty well. So that, of course, you think would be good here for a Pinterest.
- But it's not the same level as Meta.
SEANA SMITH: But he also went on-- right, but-- yes, it's not the same level as Meta. Meta is huge though, when you take a look at how far behind Pinterest is.
DAVE BRIGGS: Yeah, this is an ad struggle.
SEANA SMITH: It's an ad struggle. And I think that's certainly--
DAVE BRIGGS: One Google did not see.
SEANA SMITH: One Google did not see to the degree-- and I also that-- I think a lot of these questions will also be answered on the earnings call as well once we hear from Bill Ready, the CEO there at Pinterest, and once we hear from Evan Segal over at Snap just in terms of exactly what they are seeing currently and the advertising market. But I think the big question here is how quickly, potentially, we could see some sort of recovery.
- Right, but we are certainly seeing the tale of two different types of tech, right? You have Meta, who is just really outperforming and figuring out how to capitalize and monetize on its-- both brand awareness and brand strength in the ad sector.
And Snap also said they're blaming some of it on disruptions to upgrades that it made to its platform that it sells ads on. So that was, I guess, some of the challenge there. But the Street certainly giving snap a thumbs down in response to that report card. I mean, it's counter to what we just saw yesterday from Meta.
And I mean, look, Meta, definitely, once upon a time, wanted a piece of Snap. So Snap is paying for not falling into that fold. Again, certainly seeing a tale of two types of tech in the tech sector.