Pinterest Inc PINS is trading lower Friday amid weakness in social media stocks following worse-than-expected third-quarter financial results and soft fourth-quarter guidance from Snap Inc SNAP.
Snap reported quarterly adjusted earnings of 17 cents per share, which beat the estimate of 8 cents per share. The company reported quarterly revenue of $1.07 billion, which came in below the estimate of $1.1 billion.
Snap expects fourth-quarter revenue to be in a range of $1.165 billion to $1.205 billion versus the estimate of $1.36 billion.
The company said advertising revenue was negatively impacted by Apple Inc's AAPL privacy changes surrounding advertising on mobile apps.
“We’re now operating at the scale necessary to navigate significant headwinds, including changes to the iOS platform that impact the way advertising is targeted, measured, and optimized, as well as global supply chain issues and labor shortages impacting our partners," said Evan Spiegel, CEO of Snap.
Snap owns one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe.
Pinterest operates a social media platform focused on image sharing designed to enable information discovery.
See Also: BofA On PayPal's Potential Pinterest Buyout
PINS Price Action: Pinterest has traded as high as $89.90 and as low as $48.29 over a 52-week period.
The stock was down 4.43% at $58.63 at time of publication.
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