Pinterest Shares Drop Amid CFO Resignation and Slower Revenue Growth
Pinterest (NYSE:PINS) shares fell nearly 8% on Wednesday, extending their decline to over 21% in the past month. The drop follows a late-August announcement that Chief Financial Officer Julia Donnelly resigned, with an interim replacement set for October and no immediate successor named yet. The company also guided Q3 revenue growth lower than its previous quarter's performance, projecting $1.19 billion to $1.21 billion in revenue—a 13% to 15% increase year-over-year compared to a stronger-than-expected 18.2% rise in the second quarter. This has led investors to reassess Pinterest’s valuation, which currently trades at a trailing P/E of over 54x. While other social media peers like Reddit (NYSE:RDDT) and Snap (NYSE:SNAP) also saw declines on Wednesday—down about 2% each—their drops were far less severe than Pinterest's. The Global X Social Media ETF (NASDAQ:SOCL), which includes these names, fell just 1%, suggesting the selloff is more company-specific rather than a broad sector-wide shift.
Tickers: $PINS $RDDT $SNAP $SOCL
Topics: P/E multiple Pinterest Reddit Snap social media stocks