From Nasdaq: 2024-07-26 08:07:00

Pinterest, Inc. will report Q2 2024 earnings on Jul 30, with revenue and earnings estimates at $847.8 million and 28 cents per share, respectively. Earnings estimates for 2024 and 2025 have improved over the past 90 days. Pinterest has a history of beating earnings estimates, with an average surprise of 38.8% over the last four quarters. A positive earnings surprise is expected for Q2 based on the company’s ESP of +7.14% and Zacks Rank #3. Pinterest is seeing increased user engagement on the platform and focusing on operational improvements and AI integration to drive revenue growth. The company is also enhancing advertising tools and formats for better monetization opportunities. Despite strong engagement metrics in verticals like men’s fashion, auto, health, and travel, Pinterest faces competition from Amazon, Facebook, Google, Snap, and Twitter. The company’s stock price has performance has outpaced the industry over the past year but lags behind Meta Platforms. From a valuation standpoint, Pinterest is relatively expensive compared to the industry average but below its mean. Pinterest continues to improve its advertising platform and AI algorithms to enhance user engagement and profitability in the long term. The company’s partnerships with Amazon and Google aim to boost commercial intent and shoppability on the platform. However, increasing competition may impact user engagement, and high operating expenses could affect profitability. Despite these challenges, Pinterest’s solid net sales growth and improvements in lower funnel solutions make it a sound investment for long-term investors. The company’s focus on expanding monetization opportunities in international markets through third-party ad integration is encouraging. Long-term investors already holding the stock may benefit from staying put, while new investors may want to approach with caution given high operating expenses and competitive pressures.



Read more at Nasdaq: Should You Bet on Pinterest (PINS) Ahead of Q2 Earnings Release?