Pinterest's disappointing first-quarter forecast is overshadowing an earnings beat
Pinterest Inc (NYSE:PINS) stock is plummeting this morning, down 10.3% to trade at $36.52 following a disappointing forecast from the social media company. Pinterest said first-quarter revenue will fall between $690 million and $705 million, with the middle of that range falling well below the average analyst estimate. And while the company beat on fourth-quarter earnings expectations, it fell short of revenue estimates.
Puts are outpacing calls at an alarming rate following the report. So far, just 32,000 bullish bets have been exchanged compared to over 70,000 bearish bets, the latter figure 39 times the average intraday volume typically seen at this point. New positions are being bought to open at the three most popular contracts, led by the March 32 put. Analysts are taking a more optimistic approach, with six brokerages hiking their price target on PINS.
Today's drop -- its worst since April 28 -- has the the stock on track to close below its 60-day moving average for the first time since the company's 19% post-earnings bull gap from October. Year-to-date, the shares are now 2% lower, though they maintain a more than 44% year-over-year gain and hit a more than two-year high of $41.60 on Feb. 6.