Pinterest shares drop 20% today
24 minutes ago
Shares of Pinterest (PINS), a visual social media platform, tumbled after the company reported lower-than-expected profits and a cautious forecast for the holiday season.
In their third-quarter earnings report, Pinterest posted adjusted earnings per share of $0.38, which fell short of analysts’ expectations by 3 cents. However, revenue climbed 17% to $1.05 billion, matching estimates.
Looking to the current quarter, the company projects revenue between $1.31 billion and $1.34 billion, while analysts are looking for $1.34 billion.
This news triggered a significant 20% decrease in Pinterest’s stock price early in the trading day, marking a downturn for the year. In comparison, stocks of Snap (SNAP) and MetaPlatform (META) remained relatively stable.
Revenue in the US and Canada rose by 9% to $786 million, and average revenue per user saw a slight increase of 5% to $7.64—still below analyst expectations. The global average revenue per user was $1.78, also slightly under what was anticipated.
Despite these results, which overshadowed notable user growth, the platform now boasts a record 600 million monthly active users.
More women leaving the workforce as childcare costs rise
2 hours 4 minutes ago
As childcare expenses climb—outpacing costs of housing and college tuition for some—more mothers are opting to exit the labor force and focus on raising their children.
In September, childcare costs surged by 5.2% compared to the same time last year, based on a Bank of America report, which is almost double the overall inflation rate of 3% for the same period, as reported by the Bureau of Labor Statistics.
For the first time since 2021, the number of women reporting they couldn’t join the workforce due to family responsibilities has increased this year, according to the bank.
A report from the Department of Labor predicts that childcare costs will likely continue to rise, with some families spending more on childcare than they do on monthly rent. Alarmingly, the average cost exceeds annual tuition and fees at a four-year public university by nearly $1,800, says the Conference Board.
Axon Enterprises stock drops as profits miss expectations
2 hours 49 minutes ago
Axon Enterprises, known for its Taser gun products, reported a 31% increase in third-quarter sales from last year, surpassing analyst projections. Despite this success, the company experienced a significant drop in its stock price.
Shares of Axon Enterprises (AXON) plummeted by 18% in premarket trading following the announcement of adjusted earnings of $1.17, falling short of the consensus estimate of $1.49 by analysts.
They reported revenue of $710.6 million, slightly exceeding analyst expectations by about $5 million, maintaining a trend of at least 30% year-over-year sales growth for the seventh consecutive quarter.
Additionally, Axon announced plans to acquire emergency communications firm Carbine for $625 million, with the deal projected to finalize in the first quarter of 2026.
At the beginning of Wednesday’s trading, Axon Enterprises stock was still up around 19% since the start of the year.
Stock futures decline amidst concerns about AI bubble
3 hours 39 minutes ago
Futures contracts linked to the Dow Jones Industrial Average dipped by 0.1%.
Futures for the S&P 500 fell by 0.3% as well.
Meanwhile, Nasdaq 100 futures dropped by 0.4%.
