What happened
Shares of visual search and media platform Pinterest (PINS 3.76%) took a hit on Wednesday. The stock was down about 3% just a few minutes before the market closed.
The decline was likely driven by bearishness in the overall market for many growth stocks like Pinterest. Though many growth stocks started the trading day up several percentage points, many of these same stocks swung to a decline of a similar amount as the trading day went on.
Image source: Pinterest.https://newsroom.pinterest.com/en/gallery
So what
It's possible that some growth stocks have been giving back some sharp gains in recent weeks. After many growth stocks were slammed earlier this year, the market's appetite for these companies' shares started to improve in May -- a trend that persisted into June, leading to a meaningful rebound in many growth stocks' prices recently.
Pinterest stock is a perfect example of one that has been rebounding. Since May 13, shares have risen more than 40% -- and that includes today's decline.
It stands to reason that some growth stocks like Pinterest are simply taking a breather on Wednesday, following a nice run-up.
Now what
It's worth noting, however, that Pinterest shares haven't fully recovered. Indeed, they're still more than 13% below their 52-week high.
Investors should expect more volatility for the stock in the coming weeks -- especially since Pinterest's earnings report is around the corner. The company typically reports its second-quarter results toward the end of July.
Analysts expect huge growth from the company, with the consensus forecast for the quarter calling for revenue to increase 106% year over year. This is about in line with management's guidance for revenue to increase 105% during the period.
