Pinterest Plummets 8.2% on Earnings Miss: Can This Tech Stock Rebound?

Summary
• Pinterest (PINS) slumps 8.23% to $35.95, its lowest since March 2025
• Q2 revenue hits $998M (+17% YoY), but EPS of $0.33 misses $0.35 estimates
• 578M global MAUs set a record, yet shares trade below 200-day MA of $32.49
• Options frenzy: 1533 contracts traded in PINS20250815P33 put, 1015 in PINS20250815C35 call

Pinterest’s post-earnings selloff has ignited a technical and sentiment firestorm. Despite robust revenue growth and user expansion, the stock’s 8.2% intraday drop—its worst since the 2024 AI winter—has traders scrambling to parse the disconnect between fundamentals and price action. With the 52-week high at $40.90 now 13% away, the question looms: Is this a buying opportunity or a warning shot?

Earnings Miss and Advertiser Uncertainty Trigger Sell-Off
Pinterest’s Q2 earnings report revealed a classic case of 'good news, bad news.' While revenue surged 17% to $998 million and MAUs hit a record 578 million, adjusted EPS of $0.33 fell short of the $0.35 consensus. The miss was compounded by management’s admission that 'Asia-based e-commerce retailers pulled back spend in the U.S. tied to the de minimis exemption change,' a tariff-related headwind. This admission, coupled with a 336% spike in GAAP net income but only 33% in non-GAAP net income, highlighted structural challenges in monetizing user growth. The stock’s collapse below key support levels—30-day MA at $37.05 and 200-day MA at $32.49—has amplified technical selling pressure.

Options Playbook: Capitalizing on Volatility and Technical Breakdowns
• 30D MA: $37.05 (below) • 200D MA: $32.49 (critical support) • RSI: 68.93 (overbought correction) • MACD: 1.00 (bullish divergence fading) • Bollinger Bands: 35.42–40.02 (price near lower band)

The technical landscape suggests a short-term bearish bias. With the stock trading below both its 30D and 200D moving averages and RSI indicating overbought correction, traders should focus on downside protection and volatility plays. Two options stand out:

• PINS20250815C38 (Call): Strike $38, Expiry 8/15, IV 36.98%, Leverage 200.06%, Delta 0.174, Theta -0.0639, Gamma 0.1303, Turnover 19,660
- High leverage and moderate delta position this call to benefit from a rebound above $38. A 5% downside scenario (to $34.15) would yield a 13.5% return if the stock closes above $38 at expiry.

• PINS20250815C39 (Call): Strike $39, Expiry 8/15, IV 41.65%, Leverage 327.36%, Delta 0.106, Theta -0.045, Gamma 0.0825, Turnover 7,238
- This deep out-of-the-money call offers explosive potential if the stock rallies to $40.90 (52-week high). With a 327x leverage ratio, a 10% rebound to $39.54 would generate a 14.3% return.

Aggressive bulls may consider PINS20250815C39 into a bounce above $38.50. If $35.42 support breaks, PINS20250815P33 (Put) offers short-side potential.

Backtest Pinterest Stock Performance
The performance of Pinterest (PINS) after a notable intraday plunge of -8% was generally positive, with recovery occurring over various time frames. The backtest data reveals several key points:1. Frequency and Win Rates: The -8% intraday plunge was followed by a 3-day win rate of 57.01%, a 10-day win rate of 61.46%, and a 30-day win rate of 64.01%. This indicates that Pinterest tended to rebound from the sharp drop over the short, medium, and long term, respectively.2. Returns: The average 3-day return following the plunge was 0.64%, with a maximum return of 7.52% on day 59. The 10-day return was slightly higher at 1.80%, with a maximum return of 8.23% on day 94. Over 30 days, the average return was 3.81%, with a maximum return of 10.34% on day 124. These returns suggest that while the recovery was gradual, it was generally positive, with some days experiencing significant gains.3. Maximum Returns: The maximum return during the backtest period was 10.34%, which occurred on day 124, indicating that Pinterest's stock price could experience substantial gains in the months following the initial plunge.In conclusion, while the -8% intraday plunge in Pinterest's stock price presented a significant challenge, the subsequent performance showed a generally positive trend, with rebounds occurring over various time frames. Investors may consider these findings when assessing the potential risks and rewards of investing in Pinterest following similar downturns.

Act Now: Target $35.42 Support or Ride the Rebound
Pinterest’s 8.2% drop has created a critical juncture. The stock’s proximity to the 200-day MA at $32.49 and Bollinger Band support at $35.42 suggests a potential floor, but the dynamic PE of 256x remains a headwind. Traders should prioritize PINS20250815C38 for a rebound trade or PINS20250815P33 if the $35.42 level fails. Meanwhile, the sector leader META (Meta) is up 0.38%, signaling broader tech resilience. Watch for a breakout above $38.50 or a breakdown below $35.42 to dictate next steps.