Pinterest (PINS) shares slumped about 16% Friday morning after the social media company’s third-quarter net income fell short of estimates.
The company reported $898.37 million in revenue, 18% above last year’s third-quarter revenue, but less than $500,000 above what analysts had expected, according to estimates compiled by Visible Alpha. Pinterest reported $30.56 million in net income, up from 6.7 million the same time last year but below the $49.43 million analysts had projected.
“Our AI investments are driving results by powering better personalized experiences and greater performance for advertisers, with our lower-funnel ad tools being the fastest-growing part of our business,” Pinterest CEO Bill Ready said.
For the fourth quarter, Pinterest projects revenuebetween $1.125 billion to $1.145 billion, just below the analyst consensus of $1.148 billion heading into Thursday’s earnings. JPMorgan analysts said following the earnings that the projected revenue weakness is due to “pressure” facing advertising from the food and beverage industry, which …