(Reuters) – Pinterest Inc on Tuesday said advertisers were slowing spending on the image sharing company due to the COVID-19 pandemic and reported a bigger-than-expected first-quarter loss as costs surged from new user additions, sending its shares down 18% in extended trade.
FILE PHOTO: The company logo for Pinterest, Inc. with trading information is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., April 18, 2019. REUTERS/Brendan McDermid
Advertisers have pulled or cut marketing budgets to rein in costs due to the coronavirus-related uncertainty, impacting social media platforms including Pinterest, Facebook Inc and Twitter Inc, that rely on digital advertising sales.
Pinterest noted that it saw a sharp deceleration in sales in the middle of March as advertisers responded to changes in demand due to the virus outbreak.
“As off-line stores closed around the world, many advertisers slowed or paused their advertising spending on Pinterest,” Chief…
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