What happened
Shares of visual search and media platform company Pinterest (PINS 0.89%) fell as much a 5.2% on Monday morning. As of 10:50 a.m. EDT, the stock was down 4.3%.
There wasn't any specific news that drove the stock lower. Shares are up sharply in recent weeks, suggesting that the stock may be taking a breather after running up nicely.
Image source: Getty Images.
So what
Shares have risen 28% since May 13 -- and that includes today's pullback -- highlighting significant momentum for the stock in recent weeks.
But it's worth emphasizing that the stock is still trading more than 20% below an all-time high of $89.90 achieved earlier this year. Pinterest shares were pummeled earlier this year along with many other growth stocks. The stock's recent sharp gains, however, suggested that some investors believed its decline had gone too far, creating a buying opportunity.
Now what
Though Pinterest shares are still trading well below highs earlier this year, the underlying business is seeing staggering momentum. The company's first-quarter revenue grew 78% year over year to $485 million. Management expects its momentum to persist in the second quarter, with the company guiding for revenue to increase about 105% year over year during the period. Pinterest is notably up against an easy comparison: Second-quarter 2020 revenue grew only 4% year over year as marketers took their foot off the throttle amid COVID-19-related lockdowns.
