Share price of Pinterest Inc., the image-sharing social networking site, was plunged more than 17 percent on Friday (May 17th), after the online scrapbook company had revealed its disdainful annual forecast that had trembled investors’ faith over the company’s ability to turn into profitability in a near-term outlook.
Latest pullover of Pinterest Inc.’s share price following reveal of its first quarterly result and a grievous annual outlook, analysts were suspecting that further downfall might come sooner than anticipated. Up to yesterday (May 16th), Pinterest’s share price had soared more than 62 percent since its public opening last month.
During the reveal of its first quarterly earnings, the company had forecasted a full-year revenue between $1.055 billion to $1.08 billion, which remained mostly in an alignment with Wall St.’s forecast. Submissively criticizing Pinterest’s latest approaches, a JPMorgan analyst wrote in a client note following the reveal of annual forecast, “We continue to believe that Pinterest’s early-stage international and self-serve offerings provide meaningful growth drivers over time, but they require strong, sustained execution and Pinterest cannot simply flip a switch on either one”.
In point of fact, during the first quarter, the image sharing site, which had yet to experience a profit so far, had narrowed its losses to $41.4 million from $52.7 million on a year-on-year basis.