Core Viewpoint - Pinterest Inc (NYSE:PINS) is increasingly perceived as an AI-driven enterprise, with AI integrated into its operations, yet the stock has faced significant declines, leading to investor skepticism [1][2] Stock Performance - Since the beginning of the year, PINS stock has decreased by approximately 11%, with a notable loss of over 27% in the last six months [2] - Despite some periods of optimism, the overall trend has been negative, impacting investor sentiment [2] Short-Term Trading Opportunities - Options traders may find potential for a short-term rebound in PINS stock, as market perceptions can shift, creating opportunities for profit [3] - The current trading price of PINS stock is seen as more attractive compared to six months ago, potentially enticing investors to reconsider their positions [4] Price Dynamics - The stock is currently viewed as a discounted opportunity, with a significant price difference from its previous highs [4][5] - Historical data suggests that PINS stock could range between $25 and $28 over the next 10 weeks, with a clustering around $26.60 [11][12] Risk Geometry Analysis - The concept of risk geometry indicates where bullish sentiment may emerge and where selling pressure could arise, providing insights into trading strategies [10] - Probability density analysis shows a significant decline in potential returns beyond certain price points, suggesting a more conservative approach to trading [13] Trading Strategies - A vertical spread strategy, such as the 26/27 bull call spread, is proposed to capitalize on realistic price movements while limiting exposure to unlikely scenarios [17][18] - An alternative, more aggressive strategy is the 26/28 bull spread, which offers a higher maximum payout but requires a more significant price increase to be profitable [19]

Core Insights - Pinterest, Inc. (PINS) is experiencing significant growth in user engagement, with a record 600 million global monthly active users (MAUs) in Q3, reflecting a 17% year-over-year increase driven by strong traction across various regions [1][8] User Engagement and Content Strategy - The company is implementing initiatives to enhance actionable content from diverse sources, leading to improved engagement metrics such as sessions, impressions, and saves [2] - Integration of advanced AI models is aimed at enhancing relevancy and personalization on the platform [2] - A partnership with Amazon is established to leverage the commercial intent of users and increase shoppability [2] User Base and Market Expansion - In the U.S. and Canada (UCAN) region, Pinterest reported 103 million users, a 4% year-over-year increase, while also witnessing rapid growth outside this region with 500 million users globally [3][8] - The expansion indicates rising global awareness and product market fit in previously unmonetized international markets [3] Market Outlook - The global social media market, valued at $185.26 billion in 2024, is projected to grow at a compound annual growth rate of 12.3%, reaching $208.8 billion by 2029, positioning Pinterest to benefit from this trend [4] Competitive Landscape - Pinterest faces competition from META Platforms, Inc. (META) and Snap, Inc. (SNAP), with META reporting 3.54 billion daily active users (DAP), a 7.6% year-over-year increase, and SNAP reaching 477 million daily active users (DAU), an 8% year-over-year increase [5][6] Financial Performance and Valuation - Pinterest shares have declined by 16.9% over the past year, contrasting with the industry's growth of 1.6% [7] - The company trades at a forward price-to-sales ratio of 3.62, below the industry average of 4.75 [9] - Earnings estimates for 2025 and 2026 have decreased over the past 60 days, indicating a downward trend in expectations [10][11]

Summary of Key Points from J.P. Morgan's US Internet 2026 Outlook Industry Overview - The report focuses on the **US Internet** sector, providing insights into market performance, macroeconomic factors, and company-specific forecasts for 2026. Core Insights and Arguments 1. **2025 Performance Recap**: - The internet sector outperformed the S&P 500 by 17% in 2025, with average performance across market caps showing significant variation: - Large Cap: +19% - Mid-Cap: +42% - Small Cap: +21% - Smaller Cap (<$2B): -16% [12][13] 2. **2026 Macro Outlook**: - J.P. Morgan economists estimate a **35% risk of recession** in 2026, with expectations of resilient global growth driven by fiscal stimulus and capital expenditure [19][23]. - Key economic indicators include: - GDP Growth: 1.8% in 2026 - Inflation: Expected to remain above 3% CPI - Unemployment: Projected to peak at 4.5% in Q1 2026 [21][19]. 3. **Investment Recommendations**: - **Top Picks for 2026** include: - Alphabet (Overweight, $385 PT): Growth driven by AI and cloud services [46]. - Amazon (Overweight, $305 PT): Expected growth in AWS and retail segments [51]. - DoorDash (Overweight, $300 PT): Anticipated GOV growth of 18% CAGR from 2025-2028 [57]. - Spotify (Overweight, $805 PT): Projected revenue growth driven by premium subscriptions [66]. 4. **AI and Cloud Growth**: - AI is expected to significantly drive cloud growth, with Google Cloud projected to grow in the mid-40% range and AWS adding the highest estimated revenue in 2026 [101][102]. - The report highlights the importance of AI in enhancing operational efficiencies and driving revenue growth across various sectors [78]. 5. **Valuation Metrics**: - The S&P 500 is projected to have a price target of **$7,500** by the end of 2026, suggesting a 9% upside [26]. - Internet companies are trading at an average of **10.2x 2027E EV/EBITDA**, with expected revenue growth of approximately **13% CAGR** from 2025 to 2027 [40]. Additional Important Insights 1. **Market Dynamics**: - The report discusses the competitive landscape in the AI space, noting that leading model developers like Google and OpenAI are pushing the frontier, but competition remains intense [89][94]. - The potential for AI-driven advertising and e-commerce growth is highlighted, with expectations for significant market share shifts in the online ad market [112]. 2. **Company-Specific Catalysts**: - Alphabet's AI tools are expected to enhance productivity and revenue, while Amazon's AWS is set to double its capacity by 2027 [56][88]. - DoorDash is focusing on expanding its marketplace and improving unit economics, while Spotify is ramping up its free cash flow and operating margins [60][68]. 3. **Key Questions for 2026**: - The report raises critical questions regarding AI monetization, the impact of AI on cloud growth, and the potential for disruption in various sectors, including travel and e-commerce [76][124]. This summary encapsulates the essential insights and projections for the US Internet sector as outlined in the J.P. Morgan report, providing a comprehensive overview of the anticipated trends and investment opportunities for 2026.

Core Insights - Pinterest, Inc. has signed a definitive agreement to acquire tvScientific, a connected TV advertising platform, which will allow Pinterest to extend its advertising capabilities to TV screens and enable advertisers to assess the impact of TV ads on their marketing campaigns [2][10] Company Overview - Pinterest has 600 million monthly users who save ideas to 15 billion boards, indicating strong user engagement and intent to purchase [3] - The company utilizes AI to understand user intentions and provide relevant ideas and products, enhancing user experience and driving conversions [3] Acquisition Details - The acquisition of tvScientific is expected to close in the first half of 2026, pending regulatory approval, and aims to integrate Pinterest's audience data with tvScientific's technology for measuring TV ad performance [4][10] - This deal is anticipated to help advertisers effectively reach users across multiple screens by measuring and purchasing TV ads [4][10] Competitive Landscape - Pinterest faces competition from SNAP, Inc. and Reddit, both of which are investing in AI and AR technologies to enhance user engagement and advertising capabilities [5][6] - SNAP has partnered with Perplexity for conversational AI search and Xbox for AR features, while Reddit is testing verified profiles to attract advertisers [5][6] Financial Performance - Pinterest shares have decreased by 14.3% over the past year, contrasting with the industry's growth of 0.5% [9] - The company trades at a forward price-to-sales ratio of 3.66, which is below the industry average of 4.82 [11] - The Zacks Consensus Estimate for Pinterest's earnings for 2025 has declined by 10% to $1.62, and the estimate for 2026 has decreased by 10.5% to $1.88 over the past 60 days [12]

Core Insights - Pinterest, Inc. has signed a definitive agreement to acquire tvScientific, enhancing its connected TV (CTV) advertising capabilities [2][3] - The acquisition aims to integrate Pinterest's audience data with tvScientific's CTV platform, providing marketers with better insights into TV ad performance [2][3] - Pinterest currently has approximately 600 million monthly active users and 15 billion boards, which generates predictive signals for consumer behavior [3] Group 1: Acquisition Details - Pinterest's acquisition of tvScientific will allow the company to leverage its intent-driven audience data in the CTV space for the first time [2] - The outcome-based CTV platform from tvScientific will be integrated into Pinterest's existing performance tools, including its AI-powered advertising suite, Pinterest Performance+ [3] Group 2: Market Position and Analyst Opinions - Wedbush downgraded Pinterest from Outperform to Neutral, reducing its price target from $34 to $30, citing mixed Q3 results and macroeconomic uncertainties [4][5] - The firm expressed concerns about the competitive landscape, particularly the rise of agentic commerce tools, which could pose additional risks [4] - Wedbush believes Pinterest is likely to meet the lower end of its intermediate-term targets and sees limited visibility for near-term growth catalysts [5]

RT Avi Chawla (@_avichawla)- Google Maps uses graph ML to predict ETA- Netflix uses graph ML in recommendation- Spotify uses graph ML in recommendation- Pinterest uses graph ML in recommendationHere are 6 must-know ways for graph feature engineering (with code): ...

- Google Maps uses graph ML to predict ETA- Netflix uses graph ML in recommendation- Spotify uses graph ML in recommendation- Pinterest uses graph ML in recommendationHere are 6 must-know ways for graph feature engineering (with code): ...

Core Viewpoint - Pinterest is acquiring tvScientific to enhance its performance advertising capabilities on connected TV (CTV), aiming to integrate high-intent audiences and AI-driven advertising solutions into its platform [1][2][3]. Group 1: Acquisition Details - Pinterest has entered a definitive agreement to acquire tvScientific, expecting the transaction to close in the first half of 2026, pending regulatory review [2]. - The acquisition will allow Pinterest to leverage the tvScientific platform within its existing advertising suite, Pinterest Performance+, enhancing its automation and AI capabilities [3]. Group 2: Strategic Implications - The integration of tvScientific will enable advertisers to utilize performance metrics for TV advertising, positioning Pinterest as a comprehensive solution for search, social, and CTV performance [4]. - This acquisition is part of Pinterest's multi-year strategy to expand its advertising reach and provide advertisers with tools to engage audiences beyond its platform [4]. Group 3: Technological Advancements - Pinterest's platform utilizes AI to deliver personalized recommendations and shopping experiences, which will now extend to CTV through the acquisition [3][5]. - The company aims to predict user preferences and enhance the shopping experience, as evidenced by recent partnerships with Walmart, Wix, and Instacart [6].

Core Insights - Intel Corporation is transitioning from a PC-centric business model to data-centric sectors, including AI and autonomous driving, while Pinterest focuses on enhancing its advertising platform to attract millennials and Gen Z [1][2] Intel Corporation - Intel is expanding its manufacturing capacity as part of its IDM 2.0 strategy, with new products like the Intel Core Ultra series 3 processor and Xeon 6+ expected to launch in 2025 [4] - The company has received $7.86 billion in funding from the U.S. Department of Commerce and additional investments from NVIDIA ($5 billion) and Softbank ($2 billion) to support AI and semiconductor initiatives [5] - Despite these advancements, Intel faces challenges due to its reliance on the Chinese market amid increasing competition and export restrictions [6] - The Zacks Consensus Estimate for Intel's 2025 sales indicates a year-over-year decline of 1.3%, while EPS is expected to grow by 346.2% [11] - Over the past year, Intel's stock has surged by 96.2%, outperforming the industry growth of 32.4% [14] - Intel's shares trade at a price/sales ratio of 3.61, which is lower than Pinterest's 3.91, making it more attractive from a valuation standpoint [15] Pinterest, Inc. - Pinterest is enhancing its advertising platform to provide unique value to advertisers, particularly through its Verified Merchants Program and partnerships with companies like Amazon [7][8] - The company anticipates a significant increase in operating expenses as it expands its operations and product offerings [10] - The Zacks Consensus Estimate for Pinterest's 2025 sales suggests a year-over-year growth of 16.1%, with EPS expected to increase by 25.6% [12] - Over the past year, Pinterest's stock has declined by 9.9% [14] - Pinterest's valuation metrics are higher compared to Intel, indicating it may be more expensive for investors [18]

Core Insights - Pinterest, Inc. (PINS) shares have declined 14.7% over the past year, underperforming the Internet - Software sector's growth of 4.5% and the S&P 500 [1] - The company has outperformed Snap Inc. (SNAP), whose shares fell 35.3%, but underperformed Meta Platforms, Inc. (META), which saw a 7.8% increase [2] Financial Performance - In Q3, total costs and expenses rose to $990.6 million from $904.3 million year-over-year, with research and development expenses increasing to $371.3 million from $326.7 million [5] - Earnings estimates for PINS have declined by 10% for 2025 to $1.62 and by 10.48% for 2026 to $1.88 over the past 60 days [10] Competitive Landscape - Pinterest faces significant competition from social media platforms like META, Reddit, and SNAP, with Instagram being a primary competitor due to its strong e-commerce integration [3] - Smaller companies such as Allrecipes, Houzz, and Tastemade also pose competition by offering engaging content and commerce opportunities [3] Operating Challenges - The company is experiencing rising operating expenses due to heavy investments in AI product development and user engagement initiatives [4] - Global ad pricing has dropped 24% year-over-year, impacting overall ad revenue and monetization, particularly in newer international markets [7][9] Market Conditions - Macroeconomic challenges, including tariff-related uncertainties and consumer spending cycles, are affecting ad spending and net sales growth in the U.S. and Canada [8] - The reliance on retail and shopping ads is a concern, as several large U.S. retailers are facing margin pressures [15] Valuation Metrics - From a valuation perspective, Pinterest appears relatively cheaper compared to the industry, with a price/sales ratio of 3.83, lower than the industry average of 4.94 and the stock's mean of 5.04 [11]