Pinterest stock dropped Tuesday after the social media company reported fourth-quarter results that beat earnings estimates but missed on revenue, as did its outlook.
After the market close Monday, Pinterest reported adjusted earnings of 29 cents a share on revenue of $877 million. Analysts expected earnings of 27 cents a share on revenue of $884.5 million. Revenue edged up 4% from the year-ago period.
The company also provided a first-quarter forecast that fell short. Pinterest expects revenue to increase in the "low single digits" from a year earlier. Analysts were expecting growth of 6.9%, to $614.5 million.
PINS stock dropped 6% to 26.23, during morning trading on the stock market today.
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Pinterest is an image sharing and social media site that lets users discover and share information on any specific topic, using images and some videos and GIFs.
Monthly active users increased 4% from the year-ago period to 450 million.
PINS Stock Buyback Announced
Pinterest also announced that its board of directors authorized a stock repurchase program of up to $500 million of its class A common stock.
"Over the past few years, Pinterest has improved support for advertisers, enhanced the user experience, increased shopping capabilities, and expanded overseas," Moness Crespi Hardt analyst Brian White said in a note to clients. "However, the competitive landscape remains fierce, digital ad spending guarded, and we believe the darkest days of this downturn are ahead of us."
White maintained a neutral rating on PINS stock.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
