Revenue climbed 17% year-over-year to $998 million, above the average analysts’ estimate of $975.52 million.
Pinterest (PINS) shares fell over 12% in Friday’s early premarket session after the social e-commerce company reported an earnings miss for the quarter.
The retail users of the Stocktwits platform have shrugged off the slide, with sentiment toward Pinterest stock moving to ‘extremely bullish’ territory by early Friday, from the ‘bullish’ mood seen a day ago.
The message volume also rose to ‘extremely high’ levels.
The 24-hour change in message volume leading up to late Thursday was 1,450%.
San Francisco, California-based Pinterest reported adjusted earnings per share of $0.33 for the second quarter of the fiscal year 2025, missing the Fiscal.ai-compiled consensus estimate of $0.35.
Revenue climbed 17% year-over-year (YoY) to $998 million, above the average analysts’ estimate of $975.52 million.
CFO Julia Donnelly said on the earnings call that the cost of revenue rose 10% due to increased infrastructure spend related to users and engagement growth, and adjusted operating expense rose 14% due to investment in teams across artificial intelligence (AI) and other product initiatives, according to a transcript provided by Koyfin.
The company said its global monthly active users (MAUs) climbed 11% YoY to 578 million.
CEO Bill Ready said, “I’m proud of our Q2 results — delivering 17% revenue growth and another quarter of record users. We’re also excited that Gen Z has grown to over half of our user base.”
“We’ve found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers.”
For the third quarter, the company expects revenue in the range of $1.03 billion to $1.05 billion, better than the $1.027-billion consensus estimate, and adjusted earnings before interest, taxes, and depreciation (EBITDA) in the range of $282 million to $302 million.
Bullish users on Stocktwits dismissed the after-hours slump and looked forward to a rebound when institutions and traders begin to participate.
Other users, while expressing discomfort at the valuation, expected price target boosts from analysts.
Pinterest stock has gained over 35% this year. Sell-side analysts are hopeful of further gains. The Koyfin-compiled consensus price target for the stock is $42.03, implying about 8% upside from Thursday’s close.
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