Pinterest stock jumped late Thursday after the social media company reported mixed first quarter results. Investors shrugged off an earnings miss as the digital pinboard company offered sales guidance ahead of expectations – joining Meta Platforms and Reddit in offering an upbeat view of the ad market despite tariffs.
Adjusted earnings for San Francisco-based Pinterest increased 35% to 23 cents per share for its March quarter, compared to expectations of 26 cents per share. Revenue increased 16% to $855 million. Analysts polled by FactSet were projecting sales of $846 million.
For the current quarter, Pinterest guided for sales of $970 million, compared to expectations of $960 million. Guidance from social media companies has been closely watched by investors, as many fear tariffs will weigh on advertising spending. Meta Platforms and Reddit both gave stronger-than-expected June quarter guidance in recent earnings reports. Snapchat parent Snap did not provide guidance when it reported results late last month.
Monthly active users for Pinterest increased 10% year-over-year to 570 million, ahead of estimates for 564.6 million.
"Our strong results in the first quarter demonstrate continued momentum in revenue, user growth and engagement," Pinterest Chief Executive Bill Ready said in a statement. "As the macroeconomic and digital ad landscape evolves, our strategy and consistent execution has made Pinterest more resilient than ever."
On the stock market today, Pinterest stock is up 16% at 32.38 in recent after-hours action.
Pinterest Stock Up In Thursday Trading
Before earnings, Pinterest gained 1.9% in Thursday trading. Shares have fallen 3.4% this year compared to a 3.7% decline for the S&P 500. But Pinterest stock has rallied more than 10% this month to retake its 21-day moving average.
Pinterest stock surged 20% on the company's strong fourth quarter results in early February but has since given back those gains on concerns about tariffs and the broader advertising industry.
Coming into the report, Pinterest stock had an IBD Composite Rating of 70 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
