News about social media

The article reviews Q2 results for 5 social networking stocks, which beat analysts' revenue estimates by 4% as a group, yet shares have averaged a 1.3% decline since reporting. Meta was the weakest performer, with revenue up 28% to $60.8 billion and 3.6 billion daily active users, but its guidance slightly missed expectations, and the stock is still up 20.4% since reporting. Reddit had the biggest estimate beat, the fastest revenue growth (61.1% to $804.9 million) and the highest guidance raise, yet its stock fell 12.7%. Yelp showed the slowest revenue growth at 1.4%, and its shares dropped 20.5%. Pinterest (18.2% revenue growth) and Snap (18.9%) also posted solid results, with Snap's stock up 20.3%.

Pinterest (PINS) stock is down 17.5% this year, closing at $21.91 on October 16, but has rallied 19.9% from its September 9 closing low of $18.28. Holds now lead analyst ratings with 19, versus 17 Buys and 2 Outperforms, and the $29.05 mean price target has been unchanged since September 30. Q2 revenue rose 18% to $1.18 billion, but the Q3 guide of $1.19 billion to $1.21 billion implies 13% to 15% growth. Pinterest also named James Dibbo, who ran finance for Amazon's ads and Prime Video businesses, as CFO starting October 26. The article presents a bull case, citing 18% U.S. and Canada revenue growth and an adjusted EBITDA margin outlook of about 30%, and a bear case, pointing to slower Q3 growth and Hold-heavy ratings.