Pinterest (NYSE:PINS) stock is taking a major beating on Friday following the release of the company’s most recent earnings report.
Pinterest put out its earnings report for the second quarter of 2021 after markets closed on Thursday. While the results were mostly positive, one key factor has investors worried about PINS stock.
The biggest problem from Pinterest’s earnings comes from its monthly active users (MAUs) data. The company notes that its MAUS in the U.S. were down by about 7% compared to the same period of the year prior.
In addition to this, Pinterest declined to provide an outlook on MAUs for the third quarter of 2021. It cited the ongoing novel coronavirus pandemic as its reason for this decision. The company says the pandemic and other factors have resulted in engagement headwinds.
It’s unfortunate that MAUs dragged down PINS stock today as the rest of its earnings report was able to beat out Wall Street’s estimates. That includes adjusted earnings per share of 25 cents on revenue of $613 million. For comparison, analysts were expecting an adjusted EPS of 13 cents on revenue of $561.88 million for the period.
Ben Silbermann, co-founder and CEO of Pinterest, said this in the most recent earnings report.
“Our second quarter results reflect both the strength of our business and the recent shift in consumer behavior we’ve seen as people spend less time at home. While we navigate through pandemic impacts, Pinterest is focused on building for the long-term by transforming from a place to browse, save and organize to a community of inspiring people sharing their passions and expertise.”
PINS stock was down 18.9% as of Friday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.