From Startup Fortune · · 1m
Pinterest Stock Crashes 20% on Weak Holiday Guidance
Pinterest shares plummeted 19-20% after reporting weak holiday quarter guidance.
In brief
Pinterest shares plummeted 19-20% after reporting weak holiday quarter guidance. Pinterest's stock dropped 19-20% as investors reacted to its Q4 revenue guidance of $1.425b-$1.475b, down from Q2's 18% growth. Originally reported by Startup Fortune.
Q3 Results
Pinterest reported third-quarter revenue of $1.17 billion, up 12% year-over-year, with 661 million monthly active users.
Q4 Guidance
Pinterest guided Q4 revenue of $1.425 billion to $1.475 billion, a 8% to 12% growth rate.
Investor Reaction
Shares dropped 19-20% after hours as Wall Street reacted to the weak guidance.
Analyst Actions
JPMorgan cut Pinterest from Overweight to Neutral and slashed its price target to $20 from $36.
Retail Traders
Retail investors flipped sentiment to 'extremely bullish' within a day of the drop.
Q4 Revenue Concerns
Pinterest's U.S. and Canada revenue grew 14% but slowed from earlier year growth.
Market Impact
Shares slid to $19.61 by November 4, down 4.6% from previous day.
What it means
Pinterest's stock dropped 19-20% as investors reacted to its Q4 revenue guidance of $1.425b-$1.475b, down from Q2's 18% growth.
