Wednesday’s Headlines: Pinterest Stock Gets Snapped
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Zoom Communications (ZM) +5.6%
American Tower (AMT) +3.6%
Hain Celestial (HAIN) +2.2%
Moving Down ⬇️
Pinterest (PINS) -23.6%
Nautilus (NLS) -19.1%
The Trade Desk (TTD) -18.5%
Stitch Fix (SFIX) -15.6%
Roku Inc. (ROKU) -13.7%
1. Shares in Pinterest (PINS) plummeted by over 23% yesterday, worsening an already disastrous year for the company. A poor earnings outlook was once again the culprit behind this slide, but somewhat interestingly, it wasn’t Pinterest’s own report that sent its stock spiraling. Instead, a bleak outlook from social media company Snap Inc. sent shockwaves across the digital advertising and social media space. Snap warned that worsening macroeconomic conditions coupled with a severe decline in advertising revenue would leave it unlikely to meet Q2 earnings estimates. This dire outlook caused companies such as Pinterest, Twitter, and Meta — all of which rely heavily on advertising revenue — to slide significantly in trading yesterday. Pinterest is now down over 50% year-to-date and it’s likely to face further headwinds down the road. Read more here.
2. Nordstrom (JWN) posted a relatively unexpected positive earnings report yesterday in what will be seen as a rare win for retail at a time when it needed it most. The luxury department store chain posted a loss per share of $0.06 versus an anticipated $0.05, but beat revenue predictions comfortably by posting sales of $3.57 billion against an expected $3.28 billion. The company also raised its revenue outlook for the fiscal year, increasing its forecast for sales to between 6% and 8% — up from a previous range of 5% to 7%. This positive call has seen Nordstrom stock pop by over 9% so far in pre-market trading. With other retail chains failing to meet earnings and revenue expectations, along with muted outlooks across the board, this earnings call is a fantastic win for a company previously down almost 14% year-to-date. Find out more on the story here.
3. In news that echos yesterday's headline regarding Starbucks (SBUX) pulling its operations from Russia, Nike (NKE) looks to have become the latest global firm to announce it will be ceasing trade in the country. The sports company has declined to renew agreements with its biggest franchisee in Russia. It had previously suspended operations in early March at all Nike stores in response to the invasion of Ukraine, but will now take it a step further by no longer providing goods to Russia in any capacity. Nike has so far not responded to calls for a comment, but the head of its chief franchisee — Inventive Retail Group — stated that “as you can see from our shops, deliveries have stopped and goods are in short supply. In the current realities, we can not continue to support the operation of mono-branded Nike stores and will be forced to close them.” Find out more here.
Get this week’s full earnings calendar here.