Investors are cracking down on Pinterest after the photo app fell short of user expectations in the past quarter. The stock temporarily lost more than 17 percent of its value in after-hours trading on Thursday. Pinterest previously announced that the number of users active on the platform at least once a month had decreased from 478 to 454 million within three months.
At the same time, Pinterest increased sales year-on-year by 125 percent to 613 million dollars, significantly exceeding analysts’ expectations. The bottom line was there was black numbers of $ 69.4 million after a loss of just under $ 101 million in the same quarter last year, as the company announced.
Pinterest previously Corona winner
Pinterest was one of the winners of the corona pandemic last year: More people used the lockdown time for the app. At Pinterest, users can save photos from the network on so-called pin boards on specific topics – for example, when they are planning a vacation or want to redesign their home.
Pinterest also sees itself as a kind of visual search engine in which software can identify similar objects. For some time now, Pinterest has also wanted to use these skills to build a business as a platform for retailers. The main source of income is advertising. Most recently, the Pinterest share had gained in a stock market rally of social networks.
Analyst points to growth in lucrative mobile phone app
Tech investor and former industry analyst Rich Greenfield, looking at the quarterly numbers, called on investors to see the forest behind the trees. Pinterest has mainly lost desktop users, with whom it is difficult to earn money – while there is growth in the more lucrative smartphone app, he argued.