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Pinterest (PINS) stock closed yesterday at $23.28 after adding 5.05% and in the pre-market is 2.71% up. The spike was attributed to the news that Facebook wants to shut down its Hobbi app.
As the market closed on July 1, American image sharing and social media services company, Pinterest Inc (NYSE: PINS) stock jumped over 5% to trade at $23.28. The sudden rise was attributed to the news that its rival app Hobbi from Facebook Inc (NASDAQ: FB) will be pulled down by July 10 due to a lack of progress in the market.
Similarly, Facebook shares jumped with almost similar change after closing the day at $237.55 after opening the day at $228.50.
In the past three months, Pinterest stock has done well as they have added 64.29%, however, in the past one year its price has dropped by 15.25%. This can be highly attributed to the market uncertainty caused by the ongoing coronavirus pandemic.
With the two companies having benefited from such fundamentals, it is not clear if there was a mutual agreement to pull down the app. However, in the bigger picture, it will be beneficial for both companies in the long term. As for Facebook, it will be in a position to focus on its ads system that generates the largest portion of its revenue ahead of the U.S. elections. On the other hand, Pinterest will continue taking advantage of being a leader without much competition.
“We expect to have to shut down apps when they are not catching on, but we hope to learn from these experiments so that we can build better, more interesting apps in the future,” said the Facebook spokesperson. In the long term, Facebook is anticipating to see a spike in its ads system as businesses recover.
Pinterest (PINS) Stock May Have Bright Future
Pinterest is a business that is capable of maneuvering through the coronavirus pandemic and in turn coming out stronger than before. This is because it is a platform where people find inspiration and many other positive things.
“I use Pinterest for everything. Book collections, trips, hobbies. It’s all there. I planned my wedding on it. When I had a kid, I planned all his stuff on it. So it was nice to discover that I wasn’t the only one,” said Pinterest CEO, Ben Silberman.
“Pinterest prides itself on being the last positive corner of the internet, and users agree. It ranks No. 1 in our survey on ‘Makes me feel inspired’ and ‘Engages with me in new and creative ways’. People come here for ideas, with 85% saying it’s where they go to start a new project. It has 200 billion ideas, but also brims with love and kindness,” said the Prophet Brand Relevance Index.
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