Despite the challenges presented by COVID-19, Pinterest's revenue rose 4% year over year to $272 million. The image sharing site experienced a 39% surge in global monthly active users (MAUs) to 416 million people in the quarter ended June 30.
"In these tough times, we're seeing more and more people rely on Pinterest to cook at home, plan kids' activities, and set up a home office," CEO Ben Silbermann said in a press release. "Businesses are helping them turn their ideas into reality as people are increasingly discovering and buying products on Pinterest."
On Monday, multiple analysts upgraded Pinterest's stock and boosted their price targets for its shares. Several analysts cited the company's impressive user growth and sizable monetization potential as reasons for their more bullish outlooks.
Besides its better-than-expected second-quarter results, investors are also excited by Pinterest's estimated 50% year-over-year revenue growth in July and approximately 35% revenue growth forecast for the third quarter. The company is clearly a beneficiary of the migration of retail sales to online channels, and it has some of the most intriguing growth prospects in the social media and e-commerce industries.