Shares of tech stock Pinterest (NYSE:PINS) plunged as much as 10% on Wednesday as growth stocks fell almost across the board. Shares closed the day down 8.4%.
There wasn't any significant news out about Pinterest today, but shares of tech stocks were down sharply, and high-growth names seemed to be hit the hardest.
Pinterest's shares are up 271.3% over the past year, so a pullback is natural. And the market seems to have turned its attention to rising interest rates and the potential for higher inflation in coming years, which hurts growth stocks.
There's no reason to change your investment thesis in a company like Pinterest after today, and it may be a buying opportunity for long-term investors who have been looking for a cheaper share price to get in.
This is one of the days when Foolish investors should be thinking about the long-term prospects for a company rather than the short-term moves in a stock. It's easy to be high on a stock when it's going up, but when stocks drop is when investing fortunes are made by those who can keep a level head and hold or add to their positions. This is one of those days for Pinterest. Over the next decade, today's move will be a blip on the stock chart.