RBC Capital Cautious on Pinterest (PINS) Due to Macroeconomic Sensitivity, Despite Outperform Rating

Core Insights - Pinterest Inc. is considered one of the most profitable large-cap stocks currently available for investment, despite recent price target adjustments by RBC Capital [1] - The company's Q3 2025 earnings report raised concerns regarding customer diversity and macroeconomic sensitivity, which may impact future performance [1] Financial Performance - Total revenue for Q3 reached $1.049 billion, reflecting a 17% year-over-year increase [2] - The platform achieved a record 600 million Monthly Active Users (MAUs), marking a 12% growth year-over-year and the ninth consecutive quarter of user growth [2] - Revenue from the Rest of World segment surged by 66% year-over-year to $70 million, while Europe revenue increased by 41% to $193 million [3] - In the US and Canada, revenue grew by 9% to $786 million [3] User Demographics - The Gen Z cohort has become the largest and fastest-growing segment, now comprising over 50% of the user base [2] - International users account for 83% of the user base but contribute only 25% of global revenue, indicating underdeveloped monetization strategies in these markets [3] Advertising Metrics - The company experienced a 54% increase in Ad Impressions growth, but faced a 24% decline in Ad Pricing due to a shift towards lower-priced international markets [3]