Pinterest, Inc. led by Chairman, Co-Founder, President and CEO Ben Silbermann and Co-Founder, Chief Design and Creative Officer, Evan Sharp ring the opening bell celebrating the IPO of Pinterest Inc. at the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid

Pinterest is set to release its first quarterly report as a public company on Thursday afternoon.
Since the visual-bookmarking’s public debut one month ago, shares have risen 60%.
Watch Pinterest trade live.

Pinterest shares plunged by as much as 14% in late Thursday trading after releasing its first-quarter results — its first quarterly report as a public company. While visual-bookmarking platform reported quarterly sales that topped expectations, its sales guidance and adjusted loss per share both fell short.

Wall Street has been concerned about two things when it comes to Pinterest, which debuted one month ago as one of a slew of young, money-losing technology companies to hit the market this year. Analysts point to worries like Pinterest’s path to profitability, and how it can compete for digital advertisement dollars against other giants like Facebook and Google.

“Despite strong fundamentals & a promising runway for future growth, we see the current risk/reward on shares as balanced given the stock performance & valuation since IPO,” UBS analysts wrote on Monday.

“Risk factors include competition for digital advertising budgets, the path to profitability in coming years (compared to current margin structure) & dual-class stock structure and management stability.”

Here’s what analysts polled by Bloomberg are expecting:

Revenue: $201.9 million versus $200.8 million expected.
Adjusted loss per share: $0.32 versus $0.10 expected.
EBITDA: -38.4 million versus -$42.1 million expected.
Full-year 2019 revenue outlook: $1.06 billion versus

The company’s “quiet period” ended earlier this week, ushering in a deluge of Wall Street commentary that reflected a pretty lukewarm view. In their reports, some analysts cautioned that Pinterest’s valuation is a bit too rich.

“We are very constructive on PINS position in mobile advertising and the company’s growth and margin cadence,” Barclays analysts wrote in a Monday note to clients. “The only thing giving us pause is the …read more

Source:: Business Insider

      

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