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Pinterest Slumps After Facebook Releases a Competing App

A report says Facebook has released a Pinterest-like app.

Pinterest  (PINS) - Get Free Report was falling Friday following a report that said Facebook  (FB) - Get Free Report had released a competing app.

The Information reported that an experimental group within Facebook quietly released a an app - called Hobbi - for saving and sharing photos of activities like cooking and home improvement projects.

The new app, according to its App Store description, is meant to “help you document and remember the things you love to do."

“Organize your photos into visual collections and see the progress you’re making over time,” the description added. 

The app recently was made available in the U.S. and a few other countries, app analytics firm Apptopia told The Information. 

A Pinterest spokesperson told The Information after its story was published that Facebook’s Hobbi app appeared to lack Pinterest’s “discoverability, search, and recommendations,” and that the company remains “focused on building a visual discovery engine.”

Hobbi was made by a team within Facebook called New Product Experimentation. Since the group was formed in mid-2019, it has released at least three other apps, including a matchmaking app for students and meme-creation tool called Whale, The Information noted.

Pinterest shares fell 0.65% to $23.39 in trading Friday. The shares have risen more than 26% year to date and more than 20% over the past three months. Pinterest went public in April 2019 at $19 a share.

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