Pinterest said on Thursday that user growth in the United States is slowing because people who used the platform for handicrafts and DIY projects at the height of the pandemic are increasingly going out as restrictions relax.

The stock price of the digital board website fell by nearly 20% in after-hours trading. Investors believe that Pinterest’s revenue in the second quarter exceeded expectations because the overall monthly active users (MAU) were lower than expected.

As the blockade accelerates the transition to e-commerce, digital advertising spending and user growth by global social media companies have surged, but analysts are now worried about whether these gains will continue.

Wedbush analyst Ygal Arounian said: “Pinterest’s use case is very attractive to people staying at home during the pandemic, and as the economy opens up, people pay less and less attention to what Pinterest is best for.”

The overall MAU is a widely watched indicator, which only increased by 9% this quarter to 454 million. According to data from Refinitiv IBES, analysts estimate it is 487.1 million. It rose by 30% in the last quarter.

“In the past year, we have emphasized how people come to Pinterest in such difficult times to seek inspiration to reshape their lives. Now as the world opens up, we are seeing similar effects in the opposite direction,” the CEO Ben Silbermann said in a conference call with analysts.

As of July 27, Pinterest’s MAU in the company’s main market, the United States, has fallen by nearly 7%. Its global MAU has increased by approximately 5%.

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Pinterest stated that the shift in user engagement has been more pronounced in the Web than in mobile app users, adding that, on average, Web users are less engaged and generate lower revenue.

Total revenue in the quarter more than doubled to 613 million US dollars (approximately 45.6 billion rupees), while the average analyst forecast was 562.1 million US dollars (approximately 41.8 billion rupees).

© Thomson Reuters 2021