Pinterest stock slides despite an upbeat Q2 report – an opportunity to buy?

Pinterest Inc (NYSE: PINS) reported market-beating results for its fiscal second quarter on Tuesday. Shares are still down about 5.0% in extended hours.  

Here's what Pinterest expects in Q3

The price action is interesting considering its guidance matched expectations as well.

Pinterest is now calling for high single-digits annualised growth in revenue in its current quarter. In the earnings press release, CEO Bill Ready said:

Last week, insiders including co-founder Evan Sharp sold millions of dollars worth of Pinterest stock as it climbed to a 52-week high.  

Pinterest second-quarter financial highlights

• Lost $34.9 million versus the year-ago $43.1 million
• Per-share loss also narrowed from 7 cents to 5 cents
• Adjusted EPS printed at 21 cents as per the press release
• Revenue went up 6.0% year-on-year to $708 million
• Consensus was 12 cents a share on $696 million revenue

Pinterest attributed much of the strength in its recently concluded quarter to ads recovery and user engagement. According to the Chief Executive:

The tech stock is now up nearly 35% for the year.

Should you buy Pinterest stock?

Pinterest ended its second quarter with 465 million global monthly active users – up 8.0%.

The social media and image sharing platform integrated artificial intelligence to match users with relevant shoppable content that also helped performance in Q2.

The after-hours weakness in Pinterest stock may be an opportunity to buy considering Mark Mahaney – the Head of Internet Research at Evercore ISI recently raised his price target on it to a Street-high of $41 citing the following reasons:

• Digital ad spend is stabilising
• Operational improvements are bearing fruits
• A fundamental inflection point ahead
• Current valuation is reasonable