Please ensure Javascript is enabled for purposes of website accessibility

Why Pinterest Stock Fell Sharply Today

By Daniel Sparks - Apr 16, 2021 at 2:39PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One research company thinks Pinterest's growth has decelerated more than expected.

What happened

Shares of Pinterest (PINS 3.03%) took a hit on Friday. The visual search and media platform provider's shares fell as much as 10.8%. As of 1:33 p.m. EDT, the stock was down 8.2%.

The growth stock's decline comes as a Seeking Alpha article noted that Cleveland Research's data indicates that "some omni-channel retailers are seeing Pinterest spending decelerating."

A chart showing a stock price falling sharply

Image source: Getty Images.

So what

"Cleveland Research says Q1 looks like it ended softer than mid-quarter expectations would indicate, and some agencies/partners noting a deceleration from Q4 levels," wrote Seeking Alpha author Jason Aycock.

While it's always possible that Cleveland Research is onto something, investors should note that analysts are already modeling for a revenue growth deceleration during the period. On average, analysts are expecting Pinterest's revenue to rise 73.8%, down from 76% growth in the prior quarter.

Now what

Management indicated during its fourth-quarter update that it expected first-quarter revenue to grow at a rate in the low-70% range. At the time of this guidance, the company had more than a month of visibility into Q1, as the report was released on Feb. 4.

Pinterest reports its first-quarter results after market close on April 27.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pinterest Stock Quote
$18.71 (3.03%) $0.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.