Pinterest Inc (PINS) stock lost 10.97% in the after-hours on Tuesday, April 27, 2021. Earlier, in the normal trading session, PINS gained 1.11% to close the session at $77.58 per share.
PINS shares have soared 273.34% over the last 12 months, and they have moved up by 8.78% in the past week. Over the past three months, the stock has gained 12.05%, while over the past six months, it has added 46.38%.
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Let’s see why PINS stock went down in the evening session
Financial results announcement
On April 27, 2021, Pinterest, Inc. reported its financial results for the quarter ended March 31, 2021.
- Pinterest Q1 2021 revenue was $485 million compared to $271 million in Q1 2020.
- It suffered a GAAP net loss of $22 million in Q1 2021 compared to $142 million in Q1 2020.
- Q1 2021 Non-GAAP net loss was $78.5 million compared to $60 million in Q1 2020.
- Adjusted EBITDA was $84 million for Q1 2021 compared to $53 million in Q1 2020.
Slow user growth for Pinterest
With the financial results announcement, Pinterest Inc. warned of slowing user growth in the United States which is the main market for the company. The company predict that average user growth in the U.S. will be flat in the second quarter of 2021 in comparison with the same period a year earlier.
A$500K Creator Fund
On April 13, 2021, Pinterest launched a $500,000 creator fund to create a more exclusive social media experience after paying attention to user feedback.
Pinterest introduced new content guidelines through a creator code that requires creators to check their shared content to be inclusive.
New advertising platform in Brazil
On April 6, 2021, Pinterest said that it will launch a new advertising platform for Brazilian marketers to enhance business opportunities among its 46 million users in the country. The new platform will open up new opportunities for existing brands looking to reach new markets.
At the moment, Pinterest Ads are only available to a small group of early partners in Brazil, including Amaro, Diageo, Eudora, Mobly, O Boticário, Samsung, and Westwing.
Despite the exceptional financial results in Q1 2021, the PINS stock went down in the after-hours because of the flat user growth prediction by the company. We can expect that PINS will regain positive momentum quickly in the coming days, based on its good financial results.