This Social-Media Stock Is Down 20% Today

Core Insights - Pinterest's shares fell significantly after the company missed profit expectations and provided weak guidance for the holiday quarter [1][5] - The company reported third-quarter adjusted earnings per share of $0.38, which was three cents below analyst expectations, while revenue increased by 17% to $1.05 billion, meeting forecasts [1][2] Financial Performance - For the current quarter, Pinterest anticipates revenue between $1.31 billion and $1.34 billion, slightly below the $1.34 billion expected by analysts [2] - In the U.S. and Canada, revenue grew by 9% to $786 million, with average revenue per user (ARPU) increasing by 5% to $7.64, both figures falling short of analyst estimates [3] User Metrics - Pinterest achieved a record of 600 million monthly active users, indicating strong user growth despite the challenges in monetization [3][5] - Global ARPU was reported at $1.78, which was slightly below expectations, highlighting difficulties in monetizing the expanding user base [3] Market Context - The results reflect broader challenges faced by social media platforms as digital ad spending slows in North America, impacting revenue growth [2] - Compared to Pinterest, shares of competitors Snap and Meta Platforms experienced more muted reactions in early trading following the news [2]