Pinterest reported fourth-quarter earnings with $981 million in revenue, up 12% from the same period last year.
The company fell short of analyst expectations with a net income of $53 cents per share compared to an expected $54 cents per share.
Pinterest, a social media platform that allows users to create and share virtual pinboards of images and videos, reported its fourth-quarter earnings on Thursday. The company's revenue for the quarter was $981 million, up 12% from the same period last year. However, Pinterest fell short of analyst expectations with a net income of $53 cents per share compared to an expected $54 cents per share.
Pinterest projects first-quarter revenue of between $690 million and $705 million. FactSet analysts expect $702 million in first-quarter revenue.
Monthly active users rose 11% to an all-time high of 498 million year over year, thanks in large part to Gen Zers.
Accuracy
Revenue: $981 million vs. $991 million expected, according to LSEG, formerly known as Refinitiv.
Deception
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The article is deceptive in several ways. Firstly, the title of the article suggests that Pinterest's stock has taken a hit after revenue miss and middling guidance when in fact it only fell slightly after hours trading. Secondly, the author states that shares initially plunged about 23% immediately after the report was released but then swung to a slight gain which is not accurate as per marketwatch data. Thirdly, Pinterest's revenue improved by 12%, not just an improvement of
The title of the article suggests that Pinterest's stock has taken a hit after revenue miss and middling guidance when in fact it only fell slightly after hours trading.
Pinterest's revenue improved by 12%, not just an improvement of <b>4.9%</b>
<p>Shares initially plunged about 23% immediately after the report was released, then swung to a slight gain.</p>
Fallacies
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The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Pinterest's revenue miss and middling guidance should be scrutinized because Meta blew out expectations just last week. This statement implies that Meta is a reliable source of information and ignores any potential biases or inaccuracies in their reporting. Secondly, the article contains inflammatory rhetoric by stating that Pinterest's Q4 numbers were 'solid but unspectacular.' This language creates an emotional response rather than providing objective analysis. Lastly, there is a dichotomous depiction of Gen Zers as being responsible for the increase in global monthly active users while also suggesting that food and beverage advertising played a big role in Pinterest's earnings report. This contradicts itself by implying that Gen Zers are not interested in food and beverages, but their presence on the platform is still contributing to revenue.
Pinterest Chief Executive Bill Ready said in a statement announcing the numbers.
Bias
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None Found At Time Of
Publication
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Conflicts
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Jon Swartz has a financial tie to Pinterest as he is the CEO of Bill Ready which was acquired by Pinterest in 2019. He also has a professional affiliation with Google as they are partners for third-party ad integration on Pinterest's platform.
Google is mentioned as a third-party ad integration partner for Pinterest's AI-based automated advertising system.
Jon Swartz, who became CEO of Bill Ready after the acquisition, is quoted saying 'We’re excited to be joining forces with Pinterest and look forward to working together.'
Author
Conflicts
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Jon Swartz has a conflict of interest on the topic of Pinterest's revenue miss and guidance as he is an investor in Amazon.com Inc., which competes with Pinterest for advertising dollars.
Pinterest shares dropped in extended trading on Thursday after the company issued a weaker-than-expected forecast and reported disappointing revenue. The stock pared some of its losses after Pinterest revealed a new Google partnership.
Revenue: $981 million vs. $991 million expected, according to LSEG, formerly known as Refinitiv. Earnings: 53 cents per share, adjusted, vs. 51 cents per share expected, according to LSEG.
Monthly active users in the fourth quarter rose 11% to 498 million and global average revenue per user was $2 lower than analyst estimates of $2.05.
Accuracy
Monthly active users in the fourth quarter rose 11% to 498 million but global average revenue per user was $2 lower than analyst estimates of $2.05.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author states that Pinterest shares dropped after the company issued a weaker-than-expected forecast and reported disappointing revenue. However, this statement is misleading as it implies that Pinterest's performance was solely responsible for its stock drop when in fact other factors such as market trends were also at play. Secondly, the author states that monthly active users rose 11% to 498 million but fails to mention that this number includes bots and fake accounts which inflates the actual user base. Thirdly, the article quotes Pinterest CEO Bill Ready stating that third-party app integration with Google is a significant revenue contributor for Pinterest's first quarter when in fact it was not mentioned as such in any of their financial reports.
The monthly active users rose 11% to 498 million but this number includes bots and fake accounts which inflates the actual user base.
The statement 'Pinterest shares dropped after the company issued a weaker-than-expected forecast and reported disappointing revenue.' is misleading because other factors were also at play.
Pinterest CEO Bill Ready stated that third-party app integration with Google is a significant revenue contributor for Pinterest's first quarter when in fact it was not mentioned as such in any of their financial reports.
Fallacies
(75%)
The article contains several fallacies. The author uses an appeal to authority by citing LSEG and analyst estimates without providing any context or evidence for their accuracy. Additionally, the author commits a false dilemma by presenting only two options for Pinterest's revenue growth in the first quarter: 15%-17% or below average analyst estimates of $703 million. This oversimplifies a complex issue and ignores other potential outcomes. The article also contains inflammatory rhetoric when it describes Pinterest as
Bias
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The article contains examples of monetary bias and religious bias. The author uses language that depicts Pinterest as being under-monetized internationally which could be seen as a negative portrayal of the company's performance in other countries.
>80% of its users but only 20% of its sales are outside the U.S.
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Conflicts
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Jonathan Vanian has conflicts of interest on the topics of Pinterest and Google partnerships as he is a reporter for CNBC which is owned by Comcast. Additionally, there are financial ties between Alphabet (Google) and Snap Inc.
Author
Conflicts
Of
Interest (50%)
Jonathan Vanian has conflicts of interest on the topics of Pinterest and Google partnership. He also has a financial stake in Alphabet (Google) as it is his employer.
Pinterest forecast first-quarter revenue largely below Wall Street estimates on Thursday.
<br>Ad spending in the shopping category, typically one of the large advertisers in the holiday quarter, grew by less than 1% sequentially.<br>
Global monthly active users on Pinterest rose by 11% to an all-time high of 498 million year over year.
Accuracy
<1% sequential growth in ad spending in the shopping category
Global monthly active users rose by 11% to an all-time high of 498 million year over year, thanks in large part to Gen Zers.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author states that Pinterest's forecast for first-quarter revenue was largely below Wall Street estimates. However, this statement is misleading as it implies that Pinterest's revenue will be significantly lower than expected when in fact it was only slightly below expectations.
Pinterest's weak forecast signals intense competition for ad dollars
However, shares of the San Francisco, California-based company were down more than 9%
Fallacies
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The article contains several fallacies. The author uses an appeal to authority by stating that Pinterest faces competition from larger social media players such as TikTok and Meta Platforms-owned Facebook and Instagram without providing any evidence or data to support this claim. Additionally, the author makes a false dilemma by suggesting that advertisers have only two options: either use Pinterest or these other platforms when in reality there may be more alternatives available. The article also contains an inflammatory statement by stating that Pinterest's solid but unspectacular Q4 numbers should see some scrutiny from the market, which is not a logical fallacy but rather an opinion. Finally, the author uses informal language such as
Bias
(75%)
The article contains examples of religious bias and monetary bias. The author uses language that depicts Pinterest as a platform for advertisers in an uncertain economy because of its more extensive user base and higher engagement for targeted ads.
>Pinterest faces competition from the likes of TikTok and Meta Platforms-owned Facebook and Instagram, which have become the go-to platforms for advertisers in an uncertain economy because of their more extensive user base and higher engagement for targeted ads.<br>Ad spending in the shopping category, typically one of the large advertisers in the holiday quarter, grew by less than 1% sequentially.
Pinterest's solid but unspectacular Q4 numbers should see some scrutiny from the market.
Site
Conflicts
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Interest (50%)
Jaspreet Singh has conflicts of interest on the topics of Pinterest and digital advertising market as they are owned by Meta Platforms-owned Facebook and Instagram. Additionally, Jaspreet Singh is an author for Yahoo Finance which competes with Google Ad Manager in the digital advertising market.
Pinterest is a social media platform that allows users to create boards and share images. It generates revenue through its advertising business, which includes display ads on its website and mobile app.
Author
Conflicts
Of
Interest (50%)
Jaspreet Singh has conflicts of interest on the topics of Pinterest and digital advertising market as he is an author for Yahoo Finance which competes with Google Ad Manager. He also has a financial stake in Amazon.com as it is one of his topics.
Pinterest has a strong IBD Relative Strength Rating of 95 and perfect Composite Rating of 99 which puts Pinterest's stock performance in the top %5% of all stocks regardless industry group.
During the December quarter, Pinterest earned 53 cents per share on $981.3 million in sales with earnings nearly doubling year over year and coming in a penny above Wall Street's forecast but sales lagged analysts expectations for $991 million.
Accuracy
Pinterest reported a revenue miss and offered ho-hum guidance.
The company projects first-quarter revenue of between $690 million and $705 million. FactSet analysts expect $702 million in first-quarter revenue.
Monthly active users rose 11% to 498 million but global average revenue per user was lower than analyst estimates.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author states that Pinterest stock tumbled after reporting light fourth-quarter sales and issued disappointing guidance. However, this statement is misleading as it implies that the company's performance was poor when in fact its earnings nearly doubled year over year and came in a penny above Wall Street's forecast. Secondly, the author states that Pinterest stock has a strong IBD Relative Strength Rating of 95 which puts Pinterest's 12-month stock performance in the top 5% of all stocks. However, this statement is misleading as it implies that the company's performance is excellent when in fact its sales growth lagged projections and guidance for first-quarter sales was below analysts' forecast.
Pinterest earned 53 cents per share, minus some items, on $981.3 million in sales. Earnings nearly doubled year over year, and came in a penny above Wall Street’s forecast.
Fallacies
(75%)
The article contains several fallacies. The first is an appeal to authority when the author quotes Chief Executive Bill Ready stating that Pinterest is a rare business where the interests of users and advertisers are aligned. However, this statement does not provide any evidence or data to support it.
Bias
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The article contains a statement that Pinterest is the rare business where the interests of users and advertisers are aligned. This implies that other businesses may not have this alignment which could be seen as biased.
]Pinterest is the rare business where the interests of users and advertisers are aligned[
The company also reported a higher-than-expected number of global monthly users at 498 million, up 11% vs. the same three months in 2022.
Site
Conflicts
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Interest (50%)
Pinterest has a conflict of interest on the topic of their earnings report and guidance as they are owned by Bill Ready who is also an IBD Relative Strength Rating and Composite Rating contributor.
Author
Conflicts
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Interest (50%)
The author has a conflict of interest on the topic of Pinterest's earnings report and guidance. The article mentions that Investor's Business Daily (IBD) provides an Relative Strength Rating (RSR) for stocks which is used to evaluate their performance against other companies in the same industry. IBD also uses a Composite Rating system, which takes into account multiple factors such as earnings growth and revenue growth, to provide a more comprehensive analysis of a company's financial health. The article mentions that Pinterest has an RSR of 48 and a Composite Rating of 59, indicating that the stock is performing poorly compared to other companies in its industry.
The article mentions IBD's Relative Strength Rating (RSR) for stocks which is used to evaluate their performance against other companies in the same industry. The author does not disclose any financial ties or personal relationships with IBD, but it is clear that they are using IDB's RSR and Composite Rating system to analyze Pinterest's earnings report.
The article mentions that Pinterest has an RSR of 48 and a Composite Rating of 59, indicating that the stock is performing poorly compared to other companies in its industry. The author does not disclose any financial ties or personal relationships with IBD, but it is clear that they are using IDB's RSR and Composite Rating system to analyze Pinterest's earnings report.
