Shares of Pinterest (NYSE:PINS), the image-sharing social media website, were falling this morning on seemingly no company-specific news.
The tech stock fell by as much as 3.2% this morning and was down by 1.8% as of 11:29 a.m. EDT.
While there wasn’t any company-related news that would cause Pinterest’s stock to fall today, some investors may have been following in the footsteps of those who’ve been selling the company’s stock over the past few weeks.
Pinterest reported its second-quarter results on July 29, and since then its share price has tumbled 28%.
While revenue jumped 125% in the quarter, investors locked in on the fact that the number of active users fell by 24 million from the previous quarter.
Shareholders are likely concerned that people will spend less time on Pinterest as economies around the world begin to open back up.
The site experienced a spike in engagement during lockdowns and social distancing, but people are eager once again to travel and experience live events, which could continue to hurt online user engagement for social media sites.
Pinterest’s stock has been pretty volatile in 2021 and is down more than 16% year to date. It’s likely that the company’s share price could experience more instability in the coming months as investors try to figure out where to invest their money as the U.S. economy grows but deals with rising COVID-19 cases simultaneously.
The delta variant is making it difficult for investors to know which areas of the economy to invest in right now, as surging coronavirus cases are forcing some cities to implement more restrictions and some companies are hitting the pause button on bringing back workers to offices.
Long-term investors may want to keep Pinterest’s recent share price dips in perspective, though, and remember that some instability is to be expected from tech stocks, especially with the pandemic-related uncertainties.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.