Pinterest stocks compete with Google and Facebook
Recently Facebook reported advertising growth of 28%. Google followed its lead by 17%. However, Pinterest picked up its pace and now is competing against its much larger rivals. Pinterest’s stock has grown from its IPO (Initial Public Offering) price in April. However, it has lost almost one-third of its value since peaking in August. Besides, Pinterest shares plunged 21% in premarket trading on Friday. Here are the latest essential numbers for September:
Revenue: USD 279.7 million, versus USD 280.6 million.
Earnings per share: 1 cent, excluding some items, vs. 4 cents loss forecast.
Monthly users: USD 322 million, versus USD 311.8 million forecast.
Average revenue per user: 90 cents, versus 91 cents forecast.
Unfortunately, Pinterest also missed estimates for its 2019 full-year outlook. The analysts were expecting revenue for the year to come to USD1,12 billion. However, the stock sank to USD20.11 following the report after closing down 3% at USD25.14.
It may seem impossible, but even though Pinterest is much smaller than online ad rivals Google and Facebook are, it is growing at a faster clip and picking up some market share.
As the CEO of Pinterest, Ben Silbermann, says Pinterest Sales grew 47% in the latest quarter from a year earlier. However, even though Pinterest is making essential steps in self-growth and development, it still has yet to turn a net profit.
Ben Silbermann, also stated that he estimated a 2019 adjusted loss of between USD 10 million and USD 30 million, which is narrower than its previous range of USD 25 million to USD 50 million. It reported a net loss for the third quarter of USD 124.7 million as stock-based compensation climbed to USD 130.3 million from USD 3.9 million a year earlier.
The company has recently updated the site design to make the service more intuitive and comfortable.
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