Pinterest Rare Loser Among Online-Ad Stocks as User Growth Slows
- Shares have sharply underperformed social-media peers in 2021
- Investor sees long-term potential from improved monetization
Photographer: Gabby Jones/Bloomberg
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Pinterest Inc. was the hottest social-media stock of 2020, but Wall Street is growing cautious after a couple of disappointing quarters sowed doubt that new pandemic-era users will stick with the platform.
People turned to Pinterest while isolating at home last year, leading to a jump in users, along with greater online commerce and advertising spending. But that tailwind -- which fueled a 254% rally in 2020 -- appears to be waning as the economy reopens, with the number of active Pinterest users dropping in the second quarter.