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Q1 Earnings Highlights: Pinterest (NYSE:PINS) Vs The Rest Of The Social Networking Stocks


Radek Strnad /
2022/06/09 7:17 am EDT
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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the social networking stocks have fared in Q1, starting with Pinterest (NYSE:PINS).

Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online.

The 4 social networking stocks we track reported a weak Q1; on average, revenues missed analyst consensus estimates by 0.83%, while on average next quarter revenue guidance was 5.48% under consensus. The technology sell-off has been putting pressure on stocks since November and while some of the social networking stocks have fared somewhat better, they have not been spared, with share price declining 10.2% since earnings, on average.

Pinterest (NYSE:PINS)

Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.

Pinterest reported revenues of $574.8 million, up 18.4% year on year, in line with analyst expectations. While the stock was up on the results, it was a weak quarter for the company, with declining number of users and topline results in line with analysts' estimates.

“Pinterest made good progress in Q1 executing on our long-term strategy. We continued to scale our native content and creators ecosystem, began beta testing Your Shop, our personalized shopping surface, and released our new open Pinterest API so that any developer can build applications for Pinners, creators, merchants and advertisers,” said Ben Silbermann, CEO and cofounder, Pinterest.

Pinterest Total Revenue

Pinterest achieved the strongest analyst estimates beat of the whole group. The company reported 433 million monthly active users, down 9.42% year on year. The stock is up 11.5% since the results and currently trades at $20.79.

Is now the time to buy Pinterest? Access our full analysis of the earnings results here, it's free.

Best Q1: Snap (NYSE:SNAP)

Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.

Snap reported revenues of $1.06 billion, up 38% year on year, missing analyst expectations by 0.57%. It was a mixed quarter for the company, with an exceptional revenue growth but a miss of the top line analyst estimates.

Snap Total Revenue

Snap delivered the fastest revenue growth among its peers. The company reported 332 million daily active users, up 18.5% year on year. The stock is down 48.2% since the results and currently trades at $15.21.

Is now the time to buy Snap? Access our full analysis of the earnings results here, it's free.

Slowest Q1: Meta (NASDAQ:FB)

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: FB) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Facebook Reality Labs.

Meta reported revenues of $27.9 billion, up 6.63% year on year, missing analyst expectations by 1.11%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

Meta had the slowest revenue growth in the group. The company reported 3.64 billion monthly active users, up 5.5% year on year. The stock is up 12.2% since the results and currently trades at $196.29.

Read our full analysis of Meta's results here.

Twitter (NYSE:TWTR)

Born out of a failed podcasting startup, Twitter (NYSE: TWTR) is the town square of the internet, one part social network, one part media distribution platform.

Twitter reported revenues of $1.2 billion, up 15.9% year on year, missing analyst expectations by 2.04%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth.

Twitter had the weakest performance against analyst estimates among the peers. The company reported 229 million daily active users, up 15% year on year. The stock is down 16.7% since the results and currently trades at $40.40.

Twitter has previously entered into a definitive agreement to be acquired by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion.

Read our full, actionable report on Twitter here, it's free.

The author has no position in any of the stocks mentioned