Photo-sharing social-media platform Pinterest (NYSE:) delivered expectation-beating second-quarter 2024 results on Wednesday, with global revenue growing 21% year over year to $854 million. The company also reported a record 12% increase in monthly active users, surpassing analyst expectations.
Pinterest CEO Bill Ready hailed the results as “impressive,” citing a significant improvement in net income and earnings per share. Additionally, adjusted EBITDA saw a 68% increase, indicating strong bottom-line growth.
Despite these positive developments, Pinterest stock plummeted 13% in midday trading, following the company’s current-quarter revenue guidance. While Pinterest expects solid revenue growth in the third quarter, analysts had higher estimates, leading to investor disappointment.
Some analysts have raised concerns about the impact of potential advertiser pullback, particularly in the food and beverage industry. However, there is no concrete evidence to support these fears, and Pinterest’s revenue growth outlook remains positive.
Overall, while the market’s reaction may seem irrational, savvy investors could view the stock dip as a buying opportunity. With Pinterest’s strong financial performance and growth prospects, there is potential for a rally in the near future.
So, is it time to buy Pinterest stock on the dip? Despite short-term market fluctuations, the company’s underlying fundamentals suggest a promising outlook for long-term investors.