Digital advertising market 'remains quite weak': D.A. Davidson Analyst
Tom Forte, D.A. Davidson Managing Director and Senior Research Analyst, discusses Pinterest earnings and compares ad market to SNAP.
You can watch the full interview here.
Key video highlights
00:00 On ad environment problem
00:17 On revenue weakness for PINS & SNAP
00:30 On possibility of digital advertising rebound
Video transcript
TOM FORTE: I think it's an ad environment problem. If you were to do a compare and contrast, Pinterest versus Snap, Snap was more heavily into financial services companies, often promoting cryptocurrencies. Pinterest, by way of comparison, was much less underweight in that type of advertisement.
But when you think of the weakness in revenue for both Pinterest and for Snap, I think it's a reminder that the digital advertising market remains quite weak. The good news is, if you go back to the early stages of the pandemic, digital advertising was very weak but rebounded very significantly when we saw signs that the economy was improving. So I think there is an opportunity for Pinterest over the next 12 months, on an improving economy, to see a rebound.