[Music] Yeah. Hi everyone. Um, thanks for joining the talk today.Um, we're super excited to be here and shares some of the learnings we um, we have from integrating the LM into Pinterest search. My name is Khan and today I'll be presenting with Mukunda and we are both machine learning engineers from search relevance team at Pinterest. So start with a brief introduction to Pinterest.Um Pinterest is a visual discovery platform where piners can come to find inspiration to create a life they love. And there are ...

Core Insights - The article discusses the author's investment strategy and portfolio, emphasizing a diverse range of stocks and unique insights into the market [1]. Group 1 - The author holds a long position in shares of GOOG and AMZN, indicating confidence in these companies' future performance [2]. - The analysis aims to provide contrasting views to help other investors make informed decisions [1]. - The author expresses personal opinions and does not receive compensation from any mentioned companies, ensuring an unbiased perspective [2]. Group 2 - The article serves as an informational resource rather than professional investment advice, urging readers to conduct their own research [3]. - It highlights the importance of due diligence in investment decisions due to inherent risks, including potential capital loss [3]. - The content does not guarantee future results, emphasizing that past performance is not indicative of future outcomes [4].

Core Viewpoint - Meta Platforms (META) is highlighted as a significant investment opportunity within the social media sector, indicating strong confidence in its growth potential and market position [1]. Group 1: Company Overview - Meta Platforms is described as the largest holding for the analyst, showcasing a strong personal conviction in the company's future performance [1]. - The company is part of a broader category of social media stocks that are recognized for their ability to achieve substantial returns [1]. Group 2: Analyst Background - The analyst has over five years of experience in equities analysis, focusing on growth and income stocks with high expected return potential and solid margins of safety [1]. - The analyst contributes to an investment group that shares actionable trading ideas across various asset classes, sectors, and industries, aiming to educate a community of investors [1]. Group 3: Investment Strategy - The investment service mentioned includes different portfolio strategies tailored for varying levels of investor activity, such as a macro portfolio for less active investors and a single equity-focused portfolio for more active investors [1].

Market Capitalization Summary - Oracle has a market capitalization of 806.88 billion, while Visa stands at 655.99 billion [2] - Procter & Gamble has a market capitalization of 378.02 billion, and ExxonMobil is at 512.70 billion [2] - Mastercard's market capitalization is 470.87 billion, and Bank of America is at 375.11 billion [2] - UnitedHealth has a market capitalization of 308.53 billion, while ASML is at 310.77 billion [2] - Coca-Cola's market capitalization is 295.75 billion, and T-Mobile US Inc is at 273.60 billion [2] Stock Performance - Oracle's stock increased by 0.46 (+0.47%), while Visa's rose by 0.47 (+0.13%) [2] - Procter & Gamble's stock saw a slight increase of 2.68 (+0.48%), while ExxonMobil's stock increased by 1.92 (+1.20%) [2] - Mastercard's stock increased by 1.46 (+1.35%), and Bank of America's stock rose by 3.15 (+2.06%) [2] - UnitedHealth's stock decreased by 11.21 (-1.40%), while ASML's stock increased by 0.93 (+1.31%) [2] - Coca-Cola's stock increased by 14.05 (+4.50%), and T-Mobile US Inc's stock rose by 3.31 (+1.39%) [2] Additional Company Insights - McDonald's has a market capitalization of 212.78 billion, while AT&T is at 207.73 billion [3] - Uber's market capitalization is 192.79 billion, and Verizon's is at 184.08 billion [3] - Caterpillar's market capitalization is 183.87 billion, while Qualcomm is at 174.99 billion [3] - BlackRock has a market capitalization of 163.25 billion, and Citigroup is at 161.13 billion [3] - Boeing's market capitalization is 158.16 billion, while Pfizer is at 142.36 billion [3] Recent Market Movements - Intel's stock increased by 0.45 (+1.99%), while Dell Technologies rose by 0.82 (+0.16%) [4] - Rio Tinto's market capitalization is 746.07 billion, and Newmont is at 654.78 billion [4] - General Motors has a market capitalization of 494.87 billion, while Target is at 472.00 billion [4] - Ford's market capitalization is 451.14 billion, and Valero Energy is at 432.26 billion [4] - Vodafone's market capitalization is 241.45 billion, while Pinterest is at 270.30 billion [5]

Group 1 - Pinterest is leasing 83,000 square feet on the entire 13th floor at SL Green's 11 Madison Ave, marking a significant move in the Midtown leasing market [1] - The deal results in 11 Madison being 92% leased, with an asking rent of $90 per square foot [1] - Pinterest will vacate 40,000 square feet at its previous location at 225 Park Ave. South [1] Group 2 - Other major tenants at 11 Madison include UBS, SONY, Suntory, and IMG, indicating a strong tenant mix in the building [2]

Core Insights - Pinterest, Inc. (PINS) has achieved a record high of 570 million global monthly active users (MAUs) in Q1 2025, reflecting steady growth across all regions [1][9] - The company is establishing a unique value proposition for advertisers, enhancing its advertising platform to attract consumer discretionary brands [2] - Recent innovations include AI-Powered Auto-Collages, which create personalized and shoppable visual content, driving user engagement [3][4] User Growth and Engagement - MAUs in the United States and Canada are projected to reach 106 million, a 5% year-over-year increase in 2025 [5] - European MAUs are estimated at 158.8 million, indicating a 9.5% year-over-year growth [5] - The rest of the world is expected to contribute 343.8 million MAUs, reflecting a solid 12% year-over-year increase [5] Competitive Landscape - Pinterest faces competition from Meta Platforms, which has increased user engagement through AI, achieving 3.43 billion Family Daily Active People, up 5.9% year-over-year [6] - Snap has also seen growth, with 460 million daily active users, up 9% year-over-year, although North America's DAU decreased by 1% [7] Financial Performance and Estimates - Pinterest shares have declined by 20.3% over the past year, contrasting with the Internet - Software industry's growth of 38.6% [8] - Earnings estimates for 2025 have increased by 2.22% to $1.84 per share, while 2026 estimates rose by 2.9% to $2.13 [11] - The company's shares currently trade at a price/sales ratio of 5.37, lower than the industry average [10]

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 - Pinterest stock (PINS) is currently valued at 11 times earnings, making it more attractive compared to Johnson & Johnson's stock, which is valued at 17 times earnings. However, Pinterest's stock has shown significant volatility during market downturns, raising concerns about its stability and risk profile [2][3]. Group 1: Growth - Pinterest's revenue is growing at 18%, significantly outpacing Johnson & Johnson's revenue growth of 4%. Over the last three years, Pinterest's average growth has been 12%, while Johnson & Johnson's has been below 4% [5]. - The company is well-positioned for substantial growth through its visual discovery platform, with an advertising business expected to thrive due to enhanced shopping features and improved targeting [6]. - Pinterest's expanding creator economy, along with international expansion and growing e-commerce integrations, is projected to accelerate revenue growth by transforming its user base into shopping-centric experiences [7]. Group 2: Cash Flows - Pinterest demonstrates robust cash flow, with an average operating cash flow (OCF) margin of 26%, comparable to Johnson & Johnson's 28%. Additionally, Pinterest's free cash flow margin of 25% surpasses Johnson & Johnson's 20% [5]. Group 3: Financial Stability - Johnson & Johnson holds a substantial $39 billion in cash, with cash as a percentage of assets at 20%, compared to Pinterest's $2.5 billion cash reserve and 11% [5]. - Pinterest has minimal debt, with only $144 million, resulting in a debt-to-equity ratio of 0.1%, significantly better than Johnson & Johnson's 14% and $52 billion in debt [5]. Group 4: Risks - Pinterest faces potential risks that could hinder its growth, including a deceleration of revenue growth due to macroeconomic pressures affecting advertising budgets [8]. - Execution risks are present regarding Pinterest's international expansion and efforts to support creators, which could challenge profitability if expected returns are not realized [9].

Core Viewpoint - Despite market volatility due to rising hostilities in the Middle East, it remains a favorable time to invest in growth stocks for the long term [1] Group 1: Company Highlights - **Nvidia**: Dominates the GPU market with a 92% share, driven by AI infrastructure demand and its CUDA software program [2] - **Broadcom**: Sees strong growth in networking and custom AI chip development, with a projected market opportunity of $60 billion to $90 billion by fiscal 2027 [4] - **Taiwan Semiconductor Manufacturing**: Leading contract semiconductor manufacturer benefiting from increased AI infrastructure spending and chip consumption [5][6] - **Palantir Technologies**: Gaining traction in the U.S. commercial sector with its AI platform, which organizes data for real-world applications [7] - **Alphabet**: Strong growth in cloud computing and AI-powered search, leveraging its distribution and ad network advantages [9] - **Amazon**: Market leader in e-commerce and cloud computing, heavily investing in AI to enhance efficiency and profitability [11] - **Pinterest**: Transforming its platform with engaging features and AI tools, leading to user growth and better monetization [12] - **Philip Morris International**: Growth driven by smokeless products with better unit economics, showing resilience in international markets [14] - **Dutch Bros**: Strong same-store sales growth with expansion opportunities through mobile ordering and menu diversification [16] - **e.l.f. Beauty**: Rapidly growing in the mass-market cosmetic space, recently acquiring Hailey Bieber's Rhode brand for further growth potential [17]

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]