Pinterest Inc. Shares Drop 7% Following Cautious Third Quarter Guidance

Shares of Pinterest Inc. declined 7% in extended trading on Tuesday following the issuance of lukewarm sales guidance for the third quarter. The stock drop occurred despite the company reporting second-quarter results that exceeded analyst estimates, including revenue of $1.18 billion and adjusted earnings per share of 43 cents. Global monthly active users also grew 11% year-over-year to reach 640 million.

Chief Financial Officer Julia Donnelly attributed the cautious third-quarter outlook to several factors, including foreign exchange headwinds and the end of spending related to the World Cup. Donnelly also noted that the scheduling of Amazon's Prime Day shifted from the third quarter last year into the second quarter of this year. While this shift provided a temporary benefit to second-quarter results, it is expected to create a headwind for the third quarter as advertising spend patterns normalize.