Pinterest's AI Push & Shoppable Ads Fuel Optimistic Outlook—Why Analysts Are Bullish

Core Viewpoint - Pinterest reported fourth-quarter revenue of $1.15 billion, exceeding estimates of $1.14 billion, but earnings per share of 56 cents fell short of the expected 65 cents. The company anticipates first-quarter revenue between $837 million and $852 million [1]. Group 1: Financial Performance - Fourth-quarter revenue was $1.15 billion, beating estimates of $1.14 billion [1]. - Fourth-quarter earnings per share were 56 cents, missing analyst estimates of 65 cents [1]. - For 2025, revenue estimates were raised by 2% to $4.2 billion, and EBITDA was increased by 8% to $1.3 billion [2]. - For 2026, revenue estimates were increased by 4% to $4.9 billion, with EBITDA raised by 9% to $1.6 billion [3]. Group 2: Analyst Insights - BofA Securities noted strong execution with AI models, leading to a record WAU/MAU ratio of 62% and a 90% increase in ad clicks [1]. - JP Morgan highlighted that Pinterest is on track to meet its 30-34% EBITDA margin target over the next 3-5 years [4]. - Goldman Sachs suggested that Pinterest's positive outlook on the ad environment should alleviate short-term growth concerns [5]. - Guggenheim pointed out that Pinterest is investing more in AI to enhance user experience and advertising tools [6]. Group 3: Stock Ratings and Price Forecasts - BofA Securities reiterated a Buy rating, raising the price forecast to $46 from $39 [7]. - JP Morgan maintained a Neutral rating, increasing the price forecast to $42 from $35 [7]. - Goldman Sachs reiterated a Buy rating, raising the price forecast to $47 from $42 [7]. - Guggenheim maintained a Neutral rating, increasing the price forecast to $39 from $33 [7]. Group 4: Market Performance - Pinterest shares were trading higher by 17.1% to $39.32 [8].