Core Viewpoint - Online advertising is poised to benefit from an "AI land grab" that could accelerate market growth according to Mizuho [1] Group 1 - The integration of AI technologies in online advertising is expected to drive significant advancements in the industry [1] - Mizuho suggests that the competitive landscape will intensify as companies vie for AI capabilities, potentially leading to increased investment and innovation [1] - The overall market for online advertising may experience rapid expansion as a result of these developments [1]

Group 1 - The article discusses the investment positions of Parkev Tatevosian, CFA, in Pinterest, indicating a personal stake in the company [1] - The Motley Fool, a financial advisory service, also holds positions in Pinterest and recommends the stock, suggesting a positive outlook on the company's performance [1] - There is a disclosure policy mentioned, indicating potential compensation for promoting Pinterest, which may influence the opinions expressed [1]

Core Insights - Pinterest, Inc. (NYSE:PINS) is recognized as a promising low-priced growth stock, with recent insider trading activity indicating confidence in the company's future [1] - The company is focusing on international expansion, particularly in Europe and the Rest of the World (ROW), which are expected to drive revenue and profit growth as these markets mature [2] - The introduction of Performance+, an AI-driven platform, is anticipated to enhance advertising revenue by improving return on ad spend (ROAS) and reducing onboarding friction for advertisers [3] Company Overview - Pinterest, Inc. is a California-based visual search and discovery platform, incorporated in 2008, that allows users to find ideas, search, save, shop, and offers various advertising products [4] Market Position - The integration with Google and Amazon, along with reseller deals, is expected to significantly boost Pinterest's international advertising revenue over the next 12 months [2] - Performance+ is seen as a key factor in converting Pinterest's user reach into advertising dollars, providing multiple benefits for advertisers [3]

Core Insights - Pinterest, Inc. has launched new advertising formats and features aimed at enhancing platform monetization, including Top of Search ads, Local Inventory Ads, Wide Shopping Ads, Promotions, and Where-to-Buy links [1][2] Advertising Innovations - The recent Pinterest Presents event highlighted various new ad formats and measurement solutions, including Media Network Connect [2] - Top of Search ads have shown promising results with a 29% higher click-through rate and a 32% improvement in new clickers during early tests [3][4] - Local Inventory Ads display real-time product availability by location, while Wide Shopping Ads are four times larger than standard placements [4] Engagement and User Experience - The new ad formats are expected to increase user engagement, but managing ad load is crucial to maintaining a positive user experience [5] - Partnerships with companies like Shopify, Smartly, and Magnite Inc. are anticipated to enhance targeting and measurement capabilities, thereby increasing advertiser demand [5][6] Competitive Landscape - Despite competition from AI rivals such as Google Mixboard, Pinterest has seen accelerated U.S. traffic, indicating stronger engagement driven by its AI tools [6] Valuation and Growth Potential - Pinterest is currently trading at approximately 13x 2026E EBITDA, which is below its historical average of 18x, presenting an attractive valuation for a company expected to grow revenue in the mid-teens with over 20% bottom-line growth potential [7] - The $44 price forecast is based on an 18x 2026E EV/EBITDA multiple, consistent with Pinterest's historical average and slightly above peer multiples, justified by its early-stage monetization and over 30% margin opportunity [7]

Core Insights - Pinterest (PINS) stock has dropped to its lowest level since June, experiencing five consecutive losses and reaching a support level at $33, but has shown signs of recovery today [1] Price Movement and Trends - PINS is currently within 0.75 of the 260-day trendline's 20-day average true range (ATR), having spent over 80% of the last 10 days and two months above this trendline [2] - Historical data indicates that similar signals in the past three years have led to an average gain of 12.8% one month later, suggesting a potential price target of just under $38 [2] Market Sentiment - The current put/call open interest ratio (SOIR) of 1.11 ranks in the 96th percentile, indicating a strong bearish bias among short-term options traders [4] - The Schaeffer's Volatility Index (SVI) for PINS is at 39%, which is in the 12th percentile of annual readings, suggesting that options traders are anticipating low volatility [5]

Core Insights - Pinterest has introduced new advertising options aimed at enhancing user engagement and driving sales, including improved Search Ads and Local Inventory Ads [1][4][9] Advertising Innovations - Pinterest is updating its Search Ads to feature more prominently in user search results, specifically within the top ten results, to capture high-intent shoppers [2][4] - The new Search Ads will ensure brands' products are visible at the beginning of shopping journeys, providing a competitive edge [4][5] - Advertiser catalogs will be highlighted in a new brand-exclusive ad unit, enhancing visibility for targeted products [5] Local Inventory Ads - Pinterest is expanding its Local Inventory Ads, which will indicate whether items can be picked up locally or shipped, thus improving the shopping experience [7][9] - These ads will also display real-time pricing for in-stock items, potentially increasing purchase rates within the app [9] Additional Features - The introduction of "where-to-buy links" is expected to significantly influence shopping behavior on the platform [9] - Pinterest is launching a "Media Network Connect" option, allowing media networks to share first-party audience data and product catalogs with advertising partners, enhancing campaign management [9][10]

Core Insights - Pinterest's stock (NASDAQ: PINS) declined by 6% on September 24, falling below its 100-day moving average of approximately $35, following mixed second-quarter earnings that raised concerns about profitability despite revenue and user growth [2] - In comparison, Meta Platforms (NASDAQ: META) is viewed as a more attractive investment due to stronger revenue growth, better profitability, and a more favorable valuation [2] Company Performance - Pinterest's revenue growth over the last 12 months was 17.0%, while Meta's was 19.4%. Over the last three years, Meta's average revenue growth was 13.0%, slightly higher than Pinterest's 12.9% [6] - Meta's profitability is significantly higher, with a last twelve months (LTM) margin of 42.9% and a three-year average margin of 34.6%, compared to Pinterest's performance [6] Industry Comparison - Pinterest serves as a visual discovery platform for users seeking inspiration across various categories such as recipes, fashion, and home decoration, while Meta develops a range of products for connecting people through various devices, including mobile, PCs, and VR headsets [3]

Core Insights - Pinterest, Inc. (PINS) is establishing a unique value proposition for advertisers, enhancing its competitive advantage through innovations in its advertising platform [1] - The company is experiencing growth momentum in the retail sector and emerging markets such as financial services, technology, and entertainment [1] Advertising Performance - Pinterest is bridging the gap between upper-funnel storytelling and lower-funnel conversion, improving campaign performance [2] - The integration of AI in the advertising process is enhancing personalization and efficiency, with the AI-powered Pinterest Performance+ suite gaining traction among advertisers [2] - Click-through and conversion rates are increasing, leading to sustained ROI for advertisers [2] Product Innovations - The management's decision to enhance the accessibility of the mobile deep linking (MDL) product has improved shoppability on the platform, significantly boosting shopping ads revenue [3] - The Direct Link product is gaining popularity among advertisers and retailers [3] Financial Metrics - In Q2, Pinterest's ad impressions grew by 55%, while ad pricing declined by 25% due to expansion into lower-priced international markets [4][8] - Pinterest's forward price-to-sales ratio is 5.22, which is below the industry average [9] Competitive Landscape - Pinterest faces competition from Meta Platforms, Inc. (META) and Snap, Inc. (SNAP) in the social commerce space, with both companies enhancing their advertising capabilities through AI [5][6] - Despite efforts to diversify, advertising remains a major revenue source for Snap, which has seen performance improvements in its advertising platform [6] Stock Performance - Pinterest's stock has gained 17.6% over the past year, compared to the industry's growth of 39.6% [7]

Core Insights - Pinterest, Inc. has appointed Emily Reuter, the Chief Financial Officer of Instacart, to its Board of Directors effective September 18 [1] - CEO Bill Ready highlighted Emily Reuter's extensive experience in scaling technology and e-commerce businesses, including her roles at Instacart and Uber, indicating her potential contribution to Pinterest's strategic goals [1] Company Developments - The addition of Emily Reuter to the Board is part of Pinterest's strategy to enhance its leadership team as it aims to expand its global presence [1] - The appointment reflects Pinterest's focus on leveraging experienced executives from dynamic sectors to drive growth and innovation [1]

Group 1 - The market currently dislikes Pinterest (NYSE: PINS) due to a 25% decline in stock price, which the company views as a strength [1] - The research emphasizes a contrarian investment approach, focusing on understanding market sentiment and competition to identify future opportunities [1] - The company aims to uncover investment opportunities through alternative data sources and a focus on fundamentals [1] Group 2 - The article highlights a successful past investment in Carvana, which returned more than 60 times over three years, showcasing the company's ability to identify undervalued stocks [1] - The research firm expresses confidence in its investment analysis process, which includes a practice of "positive paranoia" to assess potential risks and rewards [1]