Pinterest’s shares had popped last week when Snap posted its best quarter in four years, as investors were betting Pinterest’s image-based social app would also see a return in advertiser spending. Those expectations now appear to be correct, as Pinterest beat on earnings with second-quarter revenue of $613.2 million and earnings per share of 25 cents, above analysts’ estimates. However, Pinterest’s stock still tanked as the company reported monthly active user growth of just 9% to reach 454 million, when analysts were expecting 482 million.
Ahead of Pinterest’s announcement, Wall St. had forecast revenue of $562.3 million and earnings of $0.133 per share, up from a loss of $0.70