money Pinterest struggles to engage users during coronavirus
Shares of Pinterest fell 19% after the company released its lackluster earnings report. Yahoo Finance’s On The Move panel discusses.
Video Transcript
JULIE HYMAN: I want to switch gears and talk about Pinterest a little bit as well. That company, the shares are down more than 10%. And you would think a lot of people would be pinning right now. And more people are, but perhaps not as many as analysts had been predicting. So the revenue was up 35%. The user base rose, but it didn't rise quite as much as it has been in the past. And some analysts are weighing in on this. For example, MKM saying that revenue for the past month was surprisingly weak if you look at it versus a Facebook or Snap. Now, I don't know if you guys are Pinterest people. I don't happen to be. But one, again, would think-- Julia's raising her hand. One would think if a lot of people are home that they would be on Pinterest more and that it would be getting even more of a lift.
- But wouldn't it be an ad issue? Ad rates falling. Facebook and Google [INAUDIBLE] the market.
JULIE HYMAN: Yeah. But this is about-- more about the user base as well.
JULIA LA ROCHE: OK. As a Pinterest user, can I just jump in here real quick? My theory, well one, I'm not planning anything anytime soon. And two, there are so many other things that are, you know, taking my interest right now, whether it's, you know, I'm watching all my Disney Plus shows or my Apple TV, or my Netflix, or whatever. There's a lot of things going on that are kind of pulling my attention in different directions, and a lot of it is, basically, it's frankly mostly video at this point.
- But Julie, during the conference call, yesterday, management did note that that rising engagement that they saw there, it will be a challenge really to sort of maintain that. They have yet to see whether they can maintain that engagement.
