What Happened?
Shares of social commerce platform Pinterest (NYSE: PINS) jumped 5.2% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' revenue and EBITDA expectations. Sales rose 16% as more people used Pinterest to shop and more brands bought ads to reach them.
On the other hand, its EBITDA guidance for next quarter missed. Still, this print had some key positives. Also, the company also brought in Vivek Kundra as its new COO, a tech leader who once helped lead Salesforce and U.S. government digital efforts.
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What The Market Is Telling Us
Pinterest’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock dropped 5.6% on the news that President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth. Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy.
Meanwhile, Fed Chair Jerome Powell maintained a cautious stance the previous week, highlighting the difficulty of balancing the dual mandate of steady employment and price stability amid the escalating trade tension. Investor sentiment was further dampened by the absence of constructive progress in trade negotiations, especially US-China relations which took a turn for the worse in the previous week.
Overall, the outlook seemed more unclear heading into the first quarter 2025 earnings season, as a combination of hard to predict monetary policy and unresolved trade tensions weighed on business confidence.
Pinterest is down 3.8% since the beginning of the year, and at $29.42 per share, it is trading 34.6% below its 52-week high of $44.98 from June 2024. Investors who bought $1,000 worth of Pinterest’s shares 5 years ago would now be looking at an investment worth $1,581.
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