Why Pinterest Stock Fell on Friday – The Motley Fool

Why Pinterest Stock Fell on Friday – The Motley Fool

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Pinterest (PINS 1.14%) shareholders lost ground to the market on Friday, as shares fell 3% by 3 p.m. ET, compared with a 1.5% decline in the S&P 500. The downtick contributed to a wider decline for the digital media stock, which is down nearly 50% since the start of 2022.
Friday’s slump arrived as investors worried about weakening conditions in the digital advertising space.
Image source: Getty Images.
Part of Pinterest’s drop might be powered by concerns about a recent acquisition it made, which was announced on Thursday. That purchase put a spotlight on Pinterest’s challenges around user growth and profitability.
Buy the bigger factor driving shares lower Friday is investors’ concerns about the digital advertising niche. Several peers, including Snap, traded lower on Friday after receiving downgrades from investing firms. Weakening advertising spending might be one reason why Pinterest is considering a deeper push into e-commerce.
Pinterest is losing some of its appeal to more video-focused apps like TikTok and Alphabet‘s YouTube. Not only are these browsing experiences more engrossing, but they offer advertisers more space to showcase products in a video format.
Pinterest needs to find ways to reengage users who have drifted to rival social media platforms before it can build a stronger advertising business. The wider industry is also facing challenges around the effectiveness of many digital ads due to privacy tracking changes by Apple and its peers.
Investors will get a big update on these trends when Pinterest announces its second-quarter results in late July. In the meantime, the stock could stay pressured on general concerns about the digital advertising market and broader economic growth trends.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Pinterest. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/12/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

source

How do I find SEO services
Dominate search engine result pages, crush your competition, get more sales, and be the #1 provider in your service area. Work with Top SEO Agency in Dublin that also provides quality Digital Marketing Optimisation services. 
Our Search Sngine Optimisation Consultants will improve your site performance in all major search engines by implementing the Best SEO Solutions, Strategies and Techniques. Let us help you increase organic traffic, get more leads, more customers, and grow your revenue with a customised affordable SEO package.
Fully Managed WordPress Hosting
FOOTER POST

footer

Get in touch

Globe Boss

Hampton Square
Dublin - Ireland
Tel: (+353)1 868 2345