Pinterest soars after active users, sales beat estimates

Yahoo Finance’s Dan Howley joins Kristin Myers to discuss how Pinterest’s pandemic surge continues.

Video Transcript

KRISTIN MYERS: I want to talk Pinterest right now. That stock is soaring up over 27 and 1/2 percentage points right now. They had a blowout earnings report. So let's have Yahoo Finance's expert Dan Howley to talk to us about it. Hey, Dan.

DAN HOWLEY: Hey, Kristin. That's right. Pinterest saw revenue of $443 million in the quarter and earnings per share of $0.13. That's versus $0.03, which was expected. Now, essentially what Pinterest did here was manage to grow its advertising revenue, as well as its user base. Most noteworthy is its international user base.

And this comes as, you know, we saw Snap do particularly well in the quarter, seeing advertising revenue go up. And this is kind of created a boost for the likes of Facebook and Twitter around the idea that advertising has recovered from its lows during the beginning of the pandemic. Now, we'll have to see how that goes as more countries, as you were previously talking about, go into lockdown and we see cities begin to instate new curfews. But it could be something that continues to rally forward.

But you know, in addition to that, Pinterest is just also seen a boon from the fact that there was that Stop Hate for Profit campaign running on Facebook, which of course, was led by more than 1,000 companies trying to force Facebook to better police its content and take down things like hate speech and move against it. Some of those advertisers [? of ?] Pinterest [? said-- ?] and Snap-- moved onto their platforms, and that provided them with a good boost. So it's interesting to see how that had worked out, but it's not a campaign that is lasting long. And we should see some of those bounce back into Facebook.

Facebook earnings are later today, as well. So we'll get a better idea, as well as Google's and everyone else, it seems-- so we'll get a better idea of how the digital advertising industry is really working once we get those companies to report.

KRISTIN MYERS: All right, thanks so much, Dan. Yeah, looking over at tech right now, Facebook, as you mentioned, up right now 5.21% right now.