Core Insights - Celestica Inc. (CLS) and Pinterest, Inc. (PINS) are significant players in the technology sector, each with distinct expertise in electronics manufacturing services and visual recommendation platforms respectively [1][2] Celestica Overview - Celestica is a leading firm in the electronics manufacturing services (EMS) industry, providing a wide range of manufacturing and supply-chain solutions to various sectors including cloud services and original equipment manufacturers [1] - The company has over two decades of manufacturing experience and is focused on delivering cloud-optimized data storage and networking solutions, driven by the increasing demand for AI-based applications [4] - Celestica's product diversification and presence in high-value markets enhance its business resilience, reducing dependence on any single industry [5] - Despite its strengths, Celestica faces challenges with high operating expenses and stiff competition from major players like Foxconn and Flex, which have impacted its profit margins [6] Pinterest Overview - Pinterest offers a platform for users to save and organize visual recommendations, generating revenue through advertisements targeted at millennials and Gen Z [2][7] - The company is enhancing its advertising platform to provide unique value propositions for advertisers, including the Verified Merchants Program that allows brands to showcase shoppable products [7] - Pinterest is focusing on operational improvements and AI integration to enhance ad relevancy and personalization, which is expected to yield long-term benefits [8] - However, Pinterest anticipates a significant increase in operating expenses as it expands its operations and product offerings, facing competition from both larger and smaller firms [10] Financial Performance and Estimates - The Zacks Consensus Estimate for Celestica's 2025 sales and EPS indicates year-over-year growth of 26.3% and 52.1% respectively, with EPS estimates trending upward [11] - In contrast, Pinterest's 2025 sales are expected to grow by 16.1%, with EPS estimates showing a downward trend of 8.9% [12] - Over the past year, Celestica's stock has increased by 227.2%, outperforming the industry growth of 91.6%, while Pinterest's stock has declined by 18.2% [13] Valuation Comparison - Celestica appears more attractive from a valuation perspective, with a price/sales ratio of 2.06 compared to Pinterest's 3.54 [15] - Celestica holds a Zacks Rank of 1 (Strong Buy), while Pinterest has a Zacks Rank of 4 (Sell), indicating a more favorable investment outlook for Celestica [16] Conclusion - Both companies expect improvements in sales and earnings for 2025, but Celestica has demonstrated sharper revenue and EPS growth, making it a more appealing investment option compared to Pinterest [17]

Group 1 - The article highlights the importance of focusing on companies with consistent revenue gains in a challenging macroeconomic environment, particularly those with strong analyst support and solid fundamentals [3][4] - Pinterest Inc. has seen a resurgence in its user base, reaching 600 million monthly active users, marking the ninth consecutive quarter of record highs, driven largely by engagement from Gen Z users [4][5] - In the third quarter, Pinterest's revenue increased by 17% year-over-year, surpassing $1 billion, with management forecasting revenue to exceed $1.3 billion in the next quarter [5] Group 2 - Despite its growth, Pinterest faces challenges such as adapting to AI advancements and a significant decline in ad pricing, which fell nearly 25% year-over-year, although impressions increased [6][7] - The article notes that companies like Pinterest, Spotify, and Snowflake have reported substantial revenue gains and high customer engagement rates, even as consumers face inflation and economic concerns [6]

Core Viewpoint - Pinterest (PINS) is currently valued as a value stock despite its strong revenue and profit growth, maintaining a net cash balance sheet and actively repurchasing shares [1] Company Analysis - The company is underperforming compared to larger competitors but continues to show robust financial health [1] - Pinterest's strategy includes aggressive stock repurchase, indicating confidence in its valuation and future prospects [1] Analyst Insights - Julian Lin, a financial analyst, focuses on identifying undervalued companies with long-term growth potential, emphasizing strong balance sheets and management teams [1] - Lin leads the investing group Best Of Breed Growth Stocks, which aims to share high-conviction stock positions that have a significant chance of outperforming the S&P 500 [1] - The investment approach combines growth principles with strict valuation criteria to enhance the margin of safety [1]

Market Overview - The stock market has experienced unexpected volatility recently, indicating a potential start of a correction in the S&P 500 [1] - Many mid-cap stocks have been significant decliners during this period [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley [1] - He has served as an outside adviser to several seed-round startups, providing insights into current industry themes [1] - Alexander has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications [1]

Core Viewpoint - Pinterest, Inc. is viewed as a potential investment opportunity despite recent challenges, with a recommendation to start buying at current levels due to its strong fundamentals and growth potential in the context of large language models [1]. Financial Performance - Pinterest reported solid earnings, but the stock experienced a decline in after-hours trading due to earnings per share being slightly below expectations. User growth and revenue in the US and Canada were softer than anticipated, while most of the positive performance came from Europe [2]. Market Context - The current sentiment in the tech sector is cautious, with some analysts suggesting that while Pinterest has potential, other AI stocks may offer greater upside with less risk. The overall expectations for Pinterest were considered too high, leading to the stock's reaction post-earnings [2].

Core Insights - Pinterest, Inc. (PINS) is experiencing solid growth in average revenue per user (ARPU) across various regions, with global ARPU reaching $1.78 in Q3, up from $1.70 year-over-year [1][9] Revenue Performance - ARPU in Europe increased by 31% year-over-year to $1.31, driven by strong demand in the retail sector [1] - In the United States and Canada, ARPU rose by 5% year-over-year to $7.64, supported by growth in retail, consumer packaged goods (CPG), telecom, and entertainment [2] - ARPU from the Rest of World saw a significant increase of 44% year-over-year, reaching 21 cents [2] User Growth - The company has achieved 600 million active users, with Generation Z being the largest and fastest-growing demographic [2] AI and Personalization Investments - Pinterest has heavily invested in platform personalization, utilizing AI to track user preferences and enhance the shopping experience [3] - The introduction of an AI-powered shopping assistant has improved the user journey from visual search to product checkout [3] - Queries on the platform grew by 44% year-over-year, indicating increased engagement [3][4] Competitive Landscape - Pinterest faces competition from SNAP, Inc. and Reddit, with Reddit's ARPU growing by 41% year-over-year to $5.04 in Q3 [6] - SNAP's ARPU increased by 2% year-over-year to $3.16, with notable growth in North America and Europe [7] Future Projections - For Q4, Pinterest is projected to report an ARPU of $1.62 from Europe, indicating a 17.1% year-over-year growth, while ARPU from the United States and Canada is expected to reach $9.13, reflecting a 1.4% growth [5] - ARPU for the Rest of World is anticipated to be 26 cents, indicating a growth of 38.6% year-over-year [5] Valuation Metrics - Pinterest currently trades at a forward price-to-sales ratio of 3.62, which is below the industry average [10]

Core Viewpoint - November presents a favorable opportunity for investors to acquire undervalued stocks, particularly in the AI sector, as tax-loss harvesting may lead to attractive pricing Group 1: Meta Platforms - Meta Platforms' share price declined significantly after its third-quarter results, primarily due to aggressive spending rather than poor performance, which remains strong [2][5] - The company is leveraging AI to enhance ad revenue by providing engaging content to users and improving ad targeting, resulting in a 26% revenue increase last quarter, with ad impressions up 14% and average ad prices rising 10% [3] - Meta has begun serving ads on WhatsApp and Threads, presenting new revenue opportunities, and despite its metaverse investments, it continues to generate strong free cash flow, making it an attractive buy [5] Group 2: Pinterest - Pinterest's stock price fell sharply post-earnings report, but it is now trading at a forward P/E ratio of just 13x, indicating a potential bargain [6] - The company reported a 17% year-over-year revenue growth and a 24% increase in adjusted EBITDA last quarter, showcasing its strong performance [6] - Pinterest is experiencing growth in international user additions and average revenue per user (ARPU), and it has successfully transformed its platform into a shoppable discovery site using AI [8][9] Group 3: GitLab - GitLab's stock has been undervalued despite consistent revenue growth exceeding 25%, attributed to its seat-based subscription model [10][12] - The perception that AI will reduce the need for coders is misleading, as GitLab's AI Duo solution is enhancing productivity among developers [12][13] - GitLab is transitioning to a hybrid seat-plus-usage pricing model, which is expected to drive growth and improve its value proposition, with a price-to-sales multiple below 6.4 based on 2026 estimates [13]

Ark Invest Trades Summary - Ark Invest significantly increased its holdings in Bullish, Coinbase, Circle Internet Group, and Shopify while selling a large number of Pinterest shares [1] Bullish Trade - Ark Fintech Innovation ETF acquired 28,186 shares of Bullish, valued at approximately $1.06 million based on a closing price of $37.76 [2] - Analysts anticipate Bullish's third-quarter earnings per share to drop to $0.09 from $0.93 in the previous quarter, while revenue is expected to rise to $72.39 million from $58.63 million [3] - Ark purchased nearly $10.02 million worth of Bullish stock amid a crash in major cryptocurrencies like Bitcoin and Ethereum [4] Coinbase Trade - ARKF and ARK Innovation ETF collectively purchased 11,620 shares of Coinbase, totaling around $3.04 million at a closing price of $261.79 [5] - Coinbase's stock has been affected by a crypto-market crash, raising concerns about a deeper crypto winter despite recent wins, including a strong third quarter and new partnerships [6] Circle Trade - Ark's ARKF and ARKK funds added 40,071 shares of Circle Internet Group, valued at approximately $3.06 million based on a closing price of $76.60 [7] - Analysts have turned bullish on Circle, with upgrades from Baird and Bernstein, reflecting optimism about its future performance [8] Shopify Trade - Ark's ARKK fund purchased 33,992 shares of Shopify, amounting to approximately $4.8 million at a closing price of $140.45 [9] - Shopify reported a 32% year-over-year revenue increase for the third quarter, surpassing analyst expectations, and anticipates continued growth in the fourth quarter [10] Pinterest Trade - ARKK sold 203,244 shares of Pinterest, valued at approximately $5.23 million based on a closing price of $25.77 [11] - Pinterest's third-quarter earnings report was disappointing, with adjusted earnings of 38 cents per share missing expectations of 42 cents, despite a 17% revenue increase [12]

Core Viewpoint - Cathie Wood, a prominent investor in the tech sector, is actively adjusting her investment strategies in response to market changes, particularly in the cryptocurrency space [1][2]. Group 1: Investment Strategy - ARK Invest has recently sold shares of Reddit and Pinterest to invest in Bullish, a crypto trading platform backed by Peter Thiel, indicating a strategic shift towards crypto assets [3][4][5]. - The firm sold $3 million worth of Reddit shares and over $618,000 in Pinterest shares, reflecting a response to the broader tech sell-off [3][4]. - ARK Invest purchased $10 million in Bullish shares, diversifying this investment across three funds: ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW) [5]. Group 2: Market Reactions - Following the recent crypto market downturn, Cathie Wood adjusted her Bitcoin price projection from $1.5 million to $1.2 million, showcasing her adaptability to market conditions [2]. - Bullish shares experienced a decline of 4.5%, closing at $36.75, and were trading at $36.29 in pre-market hours, indicating volatility in the crypto stock market [5].

Core Insights - Ark Invest executed significant trades involving Bullish, Reddit, and Pinterest, reflecting strategic adjustments in response to market conditions [1] Bullish Trade - Ark Invest purchased a total of 29,208 shares through the Ark Fintech Innovation ETF, 191,195 shares via the ARK Innovation ETF, and 56,660 shares through the ARK Next Generation Internet ETF, amounting to approximately $10.02 million at a closing price of $36.75 [2] - The investment aligns with Ark's interest in cryptocurrency exchanges, particularly those associated with influential figures like Peter Thiel, indicating a focus on the crypto sector [3] - This investment occurred as Bitcoin approached $91,000 and Ethereum fell below $3,000, amidst a broader downtrend in the cryptocurrency market [4] - Bullish is scheduled to report its third-quarter earnings on Wednesday, with a conference call at 8:30 a.m. ET [5] Reddit Trade - Ark Invest reduced its stake in Reddit by selling 5,632 shares from ARKF and 10,908 shares from ARKW, totaling approximately $3.1 million based on a closing price of $187.55 [6] - The decision to sell Reddit shares, valued at $7.5 million, reflects Ark's strategy to navigate the current volatility in the tech sector [6] Pinterest Trade - Ark Invest sold 24,220 shares of Pinterest from the ARKK, valued at approximately $618,094 based on a closing price of $25.52 [7] - Pinterest's third-quarter revenue reached $1.05 billion, meeting estimates, while adjusted EPS of 38 cents fell short of expectations; however, monthly active users increased by 12% to 600 million, contributing to a 17% year-over-year revenue growth [8] - Pinterest guided fourth-quarter revenue to be between $1.31 billion and $1.34 billion, slightly below consensus expectations [8] Other Key Trades - Ark Invest made additional purchases including 25,137 shares of Tempus AI Inc, 72,024 shares of Twist Bioscience Corp, and 10,877 shares of Beam Therapeutics Inc, while also reducing positions in Veracyte Inc and Iridium Communications Inc [11]