One of the few recent IPOs that had not collapsed, just collapsed.
"The IPO was a significant milestone, but our focus at Pinterest hasn’t changed. We want to help people discover inspiring ideas for every aspect of their lives, from fashion and home decor to travel and fitness," said Ben Silbermann, Co-Founder, President and CEO of Pinterest.
"Our success can be seen in our Q1 results, and we’re excited to continue to grow our reach and impact in the years to come."
Pinterest is down 14% after-hours after reporting quarterly sales that topped expectations, but its guidance and adjusted loss per share both fell short.
Investors had pushed the social-media company’s stock up more than 60% in its first month of public trading, but that is fading now fast after the digital scrap-booking company said 2019 revenue will be $1.06 billion to $1.08 billion, compared with the average analyst’s projection of $1.09 billion, according to data compiled by Bloomberg.
And investors confidence was shaken...
"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."
Pin meet bubble.