Pinterest stock down 10% on disappointing Q4 revenue: should you buy?

Shares of Pinterest Inc (NYSE: PINS) lost over 10% in extended hours after the image sharing service reported disappointing revenue for its fourth financial quarter on a continued slowdown in advertising.

Pinterest stock slides on weak guidance

The stock is being punished also for the weaker-than-expected guidance.

Pinterest is now calling for a low single-digit growth in its revenue in the current quarter. Reacting to it on Yahoo Finance, D.A. Davidson analyst Tom Forte said:

Pinterest to buyback $500 million worth of its shares

Nonetheless, Pinterest did announce a $500 million share repurchase programme to cheer its shareholders. Lauding the strength of its balance sheet, Forte added:

But that’s yet to unravel. For now, the D.A. Davidson analyst is sticking to his “neutral” rating and $21 price target on this tech stock.

Key figures in Pinterest’s Q4 earnings print

• Earned $17.5 million versus the year-ago $175 million
• Adjusted per-share earnings printed at 29 cents
• Revenue climbed 4.0% year-on-year to $877.2 million
• Consensus was 27 cents a share on $888 million in revenue

Also on Monday, Pinterest said its CFO Todd Morgenfeld will exit the role on July 1^st.

Pinterest reports an increase in MAUs

The social media company ended the quarter with 450 million monthly active users (MAUs) – up 4.0% versus last year but missing expectations by 1.7 million.

Last week, Pinterest Inc announced plans of lowering its headcount by less than 5.0%. In the earnings press release, CEO Bill Ready said:

Pinterest stock is still up 8.0% for the year.