Core Insights - Pinterest, Inc. (PINS) generates significant revenues through advertising on its platforms, targeting millennials and Gen Z users who are more engaged on mobile [1] - The company faces challenges from seasonality in net sales and an uneven recovery in the digital ads market, alongside exposure to foreign exchange fluctuations [1] Financial Performance - Total costs and expenses for Pinterest increased by 12.1% year over year in Q1 2025, primarily due to higher research and development expenses [2] - Estimated total costs for the June quarter are projected at $937.7 million, reflecting a year-over-year growth of 7.1% [2] Strategic Initiatives - Pinterest is focusing on investments to enhance user engagement and monetization, including improvements in visual search capabilities and ad-serving technology [3] - The company is testing productivity tools to automate tasks for the sales force, which may impact near-term profitability but is expected to support long-term margin goals [3] Industry Context - Other tech firms like Snap Inc. and Meta Platforms, Inc. are also facing margin pressures due to user growth challenges and rising costs associated with new investments [4][5] - Snap's reliance on advertising revenue and Meta's focus on lower-revenue products like Reels are contributing to their financial struggles [4][5] Valuation Metrics - Pinterest's stock has declined by 24.4% over the past year, contrasting with the industry's growth of 35.1% [6] - The company trades at a forward price-to-sales ratio of 5.2, which is below the industry average [7] Earnings Estimates - The Zacks Consensus Estimate for Pinterest's earnings for 2025 has seen an increase over the past 60 days, indicating positive sentiment among analysts [8]

Core Viewpoint - Despite market uncertainties, it is a favorable time to invest in growth stocks with a cautious approach, starting with smaller investments and potentially increasing positions if stock prices decline. Group 1: Nvidia - Nvidia is the leader in AI infrastructure, with its GPUs being the primary chips for AI workloads, supported by its proprietary software platform CUDA [3][4] - Nvidia captured over 90% of the GPU market in Q1, with data center revenue growing more than 9 times in two years, and demand for its new Blackwell chips is accelerating [4][5] - Nvidia is positioned as a key investment in AI infrastructure despite potential risks from data center spending slowdowns [5] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is crucial in manufacturing advanced AI chips, holding significant capabilities that few companies possess [6][7] - Nearly 60% of TSMC's business comes from high-performance computing chips, with strong demand continuing [7] - TSMC is raising prices to offset near-term margin pressures and is expected to be a long-term winner in the AI sector [8] Group 3: Pinterest - Pinterest has transformed by embracing AI, leading to increased engagement and improved average revenue per user (ARPU) [9][10] - The company’s AI-driven solutions are enhancing user engagement and helping advertisers run more effective campaigns [10] - Despite potential economic slowdowns, Pinterest has strong growth prospects due to its large user base [11] Group 4: Eli Lilly - Eli Lilly is benefiting from the growth of GLP-1 drugs, with Mounjaro and Zepbound generating $6.1 billion in revenue last quarter [12] - Zepbound's revenue surged from $517 million to $2.3 billion year-over-year, indicating strong momentum [12] - The company’s next-generation oral GLP-1 drug, orforglipron, shows promise and has advantages over existing injectable drugs [13][14] Group 5: e.l.f. Beauty - e.l.f. Beauty is entering a growth phase following its $1 billion acquisition of Rhode, which generated $212 million in sales despite limited product offerings [15][16] - The acquisition is timely as e.l.f.'s growth slowed, and Rhode's expansion into Sephora presents a significant opportunity [16][17] - e.l.f. has strong retail relationships that can facilitate Rhode's distribution growth, making it an attractive investment opportunity [17]

Industry Overview - Social ecommerce has gained significant prominence, providing convenience by allowing users to find products directly within apps and offering personalized recommendations, which enhances audience targeting for retailers and sellers [1][2] - The global social ecommerce market is projected to reach $6.24 trillion by 2030, with a CAGR of 31.6% from 2023 to 2030, prompting companies like Pinterest and Snap to intensify their efforts in this expanding market [2] Pinterest (PINS) - Pinterest is experiencing solid user growth across various sectors, with notable momentum in retail and emerging markets such as financial services, technology, and entertainment [3] - The company is leveraging advanced AI capabilities to enhance personalization, with its AI recommendation engine generating 400 million predictions per second, which helps in anticipating trends and improving campaign performance [4] - As of March 31, 2025, Pinterest reported a debt-to-capital ratio of 0.0%, a current ratio of 8.41, and cash and cash equivalents of $1.25 billion, indicating a strong liquidity position for future investments [5] - The Zacks Consensus Estimate for Pinterest's 2025 sales and EPS implies year-over-year growth of 13.8% and 42.64%, respectively, with upward revisions in estimates reflecting growing investor confidence [12][19] - Over the past year, Pinterest's stock has declined by 20.7%, while the industry has grown by 33.2% [14] Snap Inc. (SNAP) - Snapchat has become the preferred social networking platform for Millennials and Gen Z, reaching 75% of 13-34-year-olds in the U.S., surpassing Facebook, Instagram, and Twitter in this demographic [7] - The platform has over 900 million monthly active users, and Snap is introducing new tools and features to enhance customer engagement [7][8] - At the end of Q1 2025, Snap reported a current ratio of 4.3, indicating a strong position to meet short-term obligations [10] - The Zacks Consensus Estimate for Snap's 2025 sales implies year-over-year growth of 8.59%, while EPS is projected to decline by 13.79% [12] - Over the past year, Snap's stock has declined by 47.8% [14] - From a valuation perspective, Snap's shares trade at a price/sales ratio of 2.26, which is lower than Pinterest's 5.4 [16] Comparative Analysis - Both Pinterest and Snap are implementing strategic initiatives to enhance user engagement and drive advertising revenue [19] - Pinterest's strong AI focus and robust liquidity position suggest it may be a better investment option compared to Snap, despite both companies currently holding a Zacks Rank 3 (Hold) [18][19]

Group 1 - Pinterest and Instacart have formed a retail media collaboration that allows Pinterest ads to become directly shoppable via Instacart, enabling users to complete purchases quickly and have items delivered in as little as 30 minutes [1][2] - The collaboration will initially allow select brands on Pinterest to target Instacart's first-party audience segments based on real-world retail purchase behavior, with plans to introduce closed-loop measurement to link Pinterest ads to actual sales on the Instacart Marketplace [3] - This partnership is part of Instacart's broader advertising ecosystem, which includes over 220 grocery eCommerce sites and various off-platform collaborations [4] Group 2 - The collaboration aims to enhance the shopping experience by transforming user inspiration on Pinterest into actual purchases, leveraging Instacart's retail media data to target high-intent users effectively [5] - Instacart has previously partnered with YouTube to make video ads shoppable, indicating a trend towards integrating shoppable features across various platforms to facilitate same-day delivery for consumers [6] - Pinterest has reported a significant increase in outbound clicks to advertisers, having more than doubled these clicks year over year for three consecutive quarters, highlighting the platform's growing effectiveness in driving sales [6]

Core Insights - Instacart and Pinterest are collaborating to enhance advertising campaigns by utilizing first-party data to connect brands with high-intent audiences [1][2] - The partnership will allow Pinterest ads to become directly shoppable via Instacart, enabling users to purchase products quickly [3][4] Group 1: Partnership Details - The initial phase of the partnership will enable select brands to target Instacart's first-party audience segments based on real-world retail purchase behavior [2] - A future phase will introduce closed-loop measurement to link Pinterest ads to actual product sales across Instacart's marketplace of over 1,800 retailers [2] Group 2: Advertising Capabilities - Brands will be able to leverage Instacart's retail media data to reach Pinterest users at the moment of intent, transforming ads into shoppable experiences [4][5] - This collaboration aims to bridge the gap between inspiration and action for millions of Pinterest users, allowing for quick purchases [4][5] Group 3: Instacart's Ecosystem - Instacart operates with over 7,000 active brands and 1,800 retail partners, simplifying advertising strategies across fragmented retail networks [6] - The Instacart advertising ecosystem includes various platforms where consumers make shopping decisions, enhancing the overall shopping experience [5][6] Group 4: Company Backgrounds - Instacart partners with nearly 100,000 stores across North America, facilitating online shopping, delivery, and pickup services [7] - Pinterest is a visual search and discovery platform with over half a billion monthly active users, focusing on inspiration and shopping [9]

Group 1 - The article expresses concern about investing in index funds that are heavily weighted with large-cap growth stocks, suggesting that careful stock-picking is necessary to outperform the market in a costly environment [1] - The author, Gary Alexander, has extensive experience in covering technology companies and has worked with startups, providing insights into current industry trends [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various publications, indicating his influence and reach within the investment community [1]

Group 1 - The online advertising industry is facing near-term obstacles due to tariff escalations, impacting growth prospects [1] - Pinterest (NYSE: PINS) has seen a decline in its stock valuation, trading at discounted levels despite previous strong performance [1] Group 2 - The investment strategy focuses on identifying undervalued companies with strong balance sheets and management teams in sectors with long-term growth potential [1]

Group 1: Company Performance - Pinterest's stock closed at $34.75, reflecting a -1.03% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.27% [1] - Over the past month, Pinterest's stock has increased by 6.62%, which is lower than the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9% [1] Group 2: Earnings Expectations - The upcoming earnings report for Pinterest is expected to show an EPS of $0.34, representing a 17.24% increase year-over-year [2] - Revenue is projected to be $973.08 million, indicating a 13.99% rise compared to the same quarter last year [2] - For the full year, earnings are estimated at $1.84 per share and revenue at $4.15 billion, reflecting increases of +42.64% and +13.8% respectively from the prior year [3] Group 3: Analyst Forecasts and Valuation - Recent revisions to analyst forecasts for Pinterest are important as they reflect changes in short-term business dynamics, with positive revisions indicating a favorable outlook [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Pinterest at 3 (Hold), with a recent upward shift of 1.39% in the EPS estimate [6] - Pinterest's Forward P/E ratio is 19.12, which is lower than the industry's Forward P/E of 29.06, and its PEG ratio stands at 0.57 compared to the industry average of 2.29 [7] Group 4: Industry Context - The Internet - Software industry, which includes Pinterest, has a Zacks Industry Rank of 41, placing it in the top 17% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Pinterest, Inc. (PINS) has achieved consistent user growth, with global monthly active users (MAUs) reaching a record high of 570 million in Q1 2025, reflecting a 5% year-over-year growth in Europe, 4% in the United States and Canada, and 14% in the Rest of World [1][8] Group 1: User Growth and Engagement - The company is focused on enhancing actionable content through a diverse range of sources, supported by an advanced AI recommendation model that generates 400 million predictions per second, effectively anticipating user trends [2][3] - The AI-driven personalization has significantly improved monetization opportunities by connecting users with relevant brands and products, thus enhancing the effectiveness of advertising campaigns [3] Group 2: Future Projections - Pinterest is expected to continue its growth trajectory, with estimates suggesting that MAUs will reach 608.6 million in 2025, indicating a 10.1% year-over-year growth [4] Group 3: Competitive Landscape - Pinterest faces competition from Meta Platforms, Inc. (META) and Snap, Inc. (SNAP) in the digital advertising sector, with Snap reporting 900 million active users and META's Instagram emerging as a strong competitor due to its e-commerce capabilities [5][6] Group 4: Financial Performance - Pinterest shares have increased by 15.8% year-to-date, outperforming the Internet - Software industry's growth of 10.6% [7][8] - However, earnings estimates for 2025 have decreased by 1.62% to $1.82 over the past 60 days, indicating a downtrend in estimate revisions [11]

Core Insights - Pinterest, Inc. (PINS) shares have declined 12.5% over the past three months, underperforming the Internet - Software sector's growth of 2.4% and the S&P 500's growth of 1% [1] - Despite this decline, Pinterest has outperformed Snap Inc. (SNAP), which fell 15.5%, but lagged behind Meta Platforms, Inc. (META), which decreased by 1.1% during the same period [3] Growth Catalysts - Pinterest is expanding into various end markets such as retail, consumer packaged goods, travel, financial services, and automotive to increase user engagement [4] - A recent collaboration with the WNBA team New York Liberty aims to bring exclusive content and experiences to the platform, tapping into the growing interest in women's basketball [4] - The company is focusing on improving operational rigor and utilizing advanced AI models to enhance relevancy and personalization, which is expected to yield long-term benefits [5] - The introduction of a visual search feature allows users to search using images, enhancing the discovery experience and likely boosting engagement [6] - Revenue growth is being driven by enhanced monetization opportunities, with international shopping ad revenues growing three times faster than overall revenue growth in those regions [7] Major Challenges - Pinterest relies heavily on advertising for revenue, making it vulnerable to changes in the advertising industry and economic downturns [8] - Although ad impressions grew by 49% in Q1, ad pricing declined by 22% year-over-year due to lower pricing in newly expanded international markets [8] - The company faces intense competition from larger media companies like Meta, Google, Snap, and TikTok, necessitating continuous investment in new tool development, which pressures margins [9] - Total costs and expenses increased to $890.5 million in Q1 from $794.4 million a year ago, with R&D expenses rising to $331.7 million from $280.3 million [9] Estimate Revision Trend - Earnings estimates for PINS for 2025 have decreased by 1.62% to $1.82, while estimates for 2026 have fallen by 2.3% to $2.12, indicating bearish sentiment regarding the stock's growth potential [11] Valuation Metrics - From a valuation perspective, Pinterest appears relatively cheaper compared to the industry, trading at a price/sales ratio of 4.8, lower than the industry average of 5.44 and below its own mean of 5.21 [14] Overall Outlook - Pinterest is experiencing strong monthly active user growth and is emphasizing shoppability and monetization potential, supported by advanced AI tools [16] - However, macroeconomic factors, geopolitical volatility, and tariff changes are impacting ad spend, while rising operating expenses and stiff competition pose challenges [17]