Pinterest (NYSE:PINS) stock rose 19% in the month of August. This occurred on the back of solid results after the company reported its first set of earnings after its initial public offering. Revenues rose 62% year-over-year to $261 million, which beat expectations. Monthly active users rose from the prior year to 300 million.
This solid quarter inspired Pinterest to raise its revenue forecasts for 2019 to between $1.09 billion and $1.11 billion. Pinterest did report a significant net loss of $1.1 billion in the quarter. It blamed this on “one-time expenses” related to its recent IPO. Shares of Pinterest look pricey in early September. The stock boasts a sky-high forward price-to-earnings ratio and a high price-to-book of 7.9.
The stock has performed well since its mid-April IPO, although there are concerns going forward. Pinterest skews heavily female when it comes to its user demographics. This is true for other platforms like Facebook and Instagram, but these do not come close to the over 150% spread difference at Pinterest. Still, its offering is unique. The platform caters particularly well to advertisers as many users hunt for home ideas and style inspirations.
Pinterest stock has slumped into late August and early September. It possesses an RSI of 41 as of close on September 6, which still puts it outside of technically oversold territory. I like Pinterest after its first earnings release, and the platform should prove to be attractive for advertisers looking to monetize in the long term.
