Tech companies Facebook, Google-parent Alphabet, Amazon and Twitter also rose, helping to recover some of Wednesday’s losses. Potentially the rise of pintrest from a rebound in advertising indicates positive things for its tech peers, including the major advertising businesses. Alphabet, Facebook, Twitter and Amazon, in which the advertising business is growing, are all about to report earnings on Thursday afternoon.
The analyst moved to Pinterest earnings with high expectations, especially as Snap’s third-quarter earnings showed “continued flexibility” from direct-response advertising, which marketers use to get immediate feedback by clicking on a link. The industry is also seeing the beginning of a recovery in brand advertising, which was tough during the epidemic.
Pinterest said advertisers boycotting other social media platforms such as Facebook and Twitter also benefited from the spread of toxic content and misinformation. CEO Ben Silberman said the company’s earnings call advertisers “have to stick around positivity as they build their brand, and it is also contributing to our growth.”
Pinterest saw total revenue of $ 443 million in the third quarter, with year-over-year growth of 58%. The company estimates that its Q4 revenue will grow 60% year-over-year, adding that there remains uncertainty about the epidemic and other factors.
However Pivotal Research analyst Michael Levine said he already had “very high expectations” that progressively boosted his recent stock and after Snap’s results last week, Pinterest delivered “more than the goods in the third quarter” .
In a note on Thursday, “In line with SNAP, the business is growing rapidly during the quarter, as both the brand and DR spend.”
Morgan Stanley analysts said in a note on Thursday that direct response and brand advertising are showing signs of a faster-than-expected recovery in the market. He said that retailers and marketers invest rapidly and experiment in digital to reach shoppers.
Some positive trends are likely to continue as consumers stay home: Emarketer analyst Andrew Lipsman said that Pinterest is “particularly well positioned for the moment” as users visit the site for inspiration, While they are also at home in the epidemic. Benefit from the boom in e-commerce
Aaron Goldman, chief marketing officer of advertising software company Mediaocean, said in an email that brands using the company’s closed ecosystem platform increased ad spending by almost 40% year-over-year in the third quarter. He also said he hopes Pinterest’s shopping tools can connect with consumers and brands as the company embeds shopping ad units in more places on the app.
MKM Partners, while upgrading the stock to Buy, said on Thursday that it is also expected to grow the company’s shopping tools.
The firm said, “There is still a relationship of buying on the pintrest in the early days.” “The growth and integration of catalogs with stakeholders in the leading eCommerce ecosystem, such as Shopify is going to increase the importance of Pinterest in the overall shopping funnel.”
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