Image Source: Unsplash
 

• Pinterest reports market-beating results for its second financial quarter.
• Its shares still slid nearly 5.0% in after-hours trading on Tuesday.
• Evercore ISI analyst Mark Mahaney sees an upside in Pinterest stock to $41.

Pinterest Inc (NYSE: PINS) reported market-beating results for its fiscal second quarter on Tuesday. Shares are still down about 5.0% in extended hours.  
 

Here’s what Pinterest expects in Q3

The price action is interesting considering its guidance matched expectations as well.

Pinterest is now calling for high single-digits annualized growth in revenue in its current quarter. In the earnings press release, CEO Bill Ready said:

 

Despite the challenging macro environment, we’re delivering performance and a distinct value proposition to advertisers, reaching users across the full funnel.

Last week, insiders including co-founder Evan Sharp sold millions of dollars worth of Pinterest stock as it climbed to a 52-week high.
 

Pinterest's second-quarter financial highlights

• Lost $34.9 million versus the year-ago $43.1 million
• The per-share loss also narrowed from 7 cents to 5 cents
• Adjusted EPS printed at 21 cents as per the press release
• Revenue went up 6.0% year-on-year to $708 million
• The consensus was 12 cents a share on $696 million revenue

Pinterest attributed much of the strength in its recently concluded quarter to ads recovery and user engagement. According to the Chief Executive:

 

Through clear focus on increasing engagement that delights users, we’re deepening monetisation per user, and building personalised and relevant experiences that go from inspiration and intent to action.

The tech stock is now up nearly 35% for the year.
 

Should you buy Pinterest stock?

Pinterest ended its second quarter with 465 million global monthly active users – up 8.0%.

The social media and image-sharing platform integrated artificial intelligence to match users with relevant shoppable content which also helped performance in Q2.

The after-hours weakness in Pinterest stock may be an opportunity to buy considering Mark Mahaney – the Head of Internet Research at Evercore ISI recently raised his price target on it to a Street-high of $41 citing the following reasons:

• Digital ad spend is stabilizing
• Operational improvements are bearing fruits
• A fundamental inflection point ahead
• The current valuation is reasonable

More By This Author: