Pinterest Inc., the pinboard-style social media company, suffered its worst stock decline in nearly a year after restructuring costs contributed to a deeper loss than expected.
(Bloomberg) — Pinterest Inc., the pinboard-style social media company, suffered its worst stock decline in nearly a year after restructuring costs contributed to a deeper loss than expected.
The shares fell 16% to $23 on Friday, the biggest one-day drop since May 2022, after the company posted a first-quarter net loss of $209 million. Analysts had projected a loss of $131.1 million on average average.
The company’s expenditures rose due to layoffs and office closures, as well as efforts to expand. The spending increase more is “weighing on margins at a time when many Big Tech players are reining in costs,” said Jeremy Goldman, an analyst at Insider Intelligence.
Pinterest beat expectations on revenue and user growth. Revenue grew 5% to $603 million for the quarter, above the average analysts’ estimate of $592.8 million.
Pinterest Chief Executive Officer Bill Ready said on Bloomberg Television Friday that the restructuring will set the stage for margin expansion. “We feel great about our progress and strategy,” he said.
–With assistance from Ed Ludlow.
(Updates shares starting in first paragraph.)
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