Why Pinterest Stock Tumbled Today

Core Insights - Pinterest's shares fell by 20.1% after reporting solid revenue growth but disappointing earnings and guidance for the fourth quarter [2][7] - The company experienced a 17% increase in revenue to $1.05 billion in Q3, driven by a 12% growth in monthly active users to 600 million [4][5] - Adjusted EBITDA rose by 24% to $306.1 million, while GAAP net income tripled to $92.1 million, but adjusted earnings per share fell short of consensus expectations [5][6] Financial Performance - Revenue for Q3 reached $1.05 billion, matching estimates with a 17% year-over-year growth [4] - Monthly active users increased by 12% to 600 million, indicating strong user engagement [4] - Adjusted EBITDA was reported at $306.1 million, a 24% increase, while GAAP net income was $92.1 million, tripling from the previous year [5] Future Guidance - For Q4, Pinterest expects revenue between $1.313 billion and $1.338 billion, reflecting a growth rate of 14%-16%, which is below the consensus estimate of $1.34 billion [8] - The company anticipates adjusted EBITDA for the current quarter to be between $533 million and $558 million [8] Market Position - Pinterest is reportedly losing market share to Meta Platforms, indicating competitive pressures in the digital advertising space [7][9] - Despite solid growth, the company’s performance is weaker compared to competitors, which may impact its long-term market position [9]