Snap, Pinterest dispel Facebook-fueled fears with strong quarters

Snap Inc. and Pinterest Inc. rallied in late trading Thursday after their quarterly results eased fears that a slowdown at rival Facebook reflected a broader slump for social media. Snap’s fourth-quarter sales increased 42% to $1.3 billion, compared with the $1.2 billion average analysts’ estimate. Snapchat, the mobile app for sending disappearing messages and watching videos, had 319 million daily active users in the period. That beat analysts’ expectations for 316 million, according to data compiled by Bloomberg. Pinterest, meanwhile, posted adjusted earnings of 49 cents, excluding some items. That handily beat the average estimate of 42 cents. Revenue also topped predictions. Snap gained as much as 43% in extended trading, while Pinterest climbed 29%. Shares of both companies had plunged earlier Thursday after Facebook owner Meta Platforms Inc. reported disappointing earnings. Apple Inc.’s change to its data-collection rules has made it harder for social media networks to sell advertising—their main sourcing of revenue. Subscribe to Ad Age now for award-winning news and insight. But the latest results suggest that Snap and Pinterest weren’t dealt as hard a blow. In Snap’s case, the company benefited from augmented-reality tools that are attractive to marketers. At Pinterest, Chief Financial Officer Todd Morgenfeld said there hasn’t been a material impact on revenue from Apple’s changes. But it’s possible that Pinterest could be impacted at some point in the future, he said. “The changes in the privacy and regulatory environment are generally unhelpful in our ability to deliver performance advertising results,” he said in an interview with Bloomberg. “We’re not immune to these issues impacting our business over time.” Subscribe to Ad Age now for award-winning news and insight. —Bloomberg News

Snap, Pinterest dispel Facebook-fueled fears with strong quarters

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