Daily Management Review

Shares of Pinterest rise up by 21%


According to trading statistics, shares of the photohosting website Pinterest are up by more than 20% in pre-trade trading following the release of financial statements and announcement of willingness of American investor Elliott to take part in the company.

Pinterest shares are up 21.4 percent to $24.27 before opening of trading. On Monday, the papers increased 2.62 percent to $19.99.

Elliott Investment Management L.P. has already claimed to be Pinterest's biggest investor. The business regarded the service as having "substantial development potential" and being a "very strategic business."

For the second quarter, revenue and earnings per share were weaker than the markets anticipated. Compared to profits guidance of $0.18, adjusted earnings per share were $0.11 per share. On a forecast of 671.41 million, revenue increased to 665.93 million, or 9%, over the prior-year period. In contrast to a profit of $69.417 million in the same period last year, the company reported a net loss of $43.076 million in the second quarter.

The number of monthly active users, which was higher than the expectation of 431 million, decreased by 5% on a year-over-year basis to 433 million. In the third quarter, the company anticipates revenue increase of 4-6 percent.

source: bloomberg.com