Core Viewpoint - Pinterest's stock experienced a significant decline of approximately 21% intra-day due to multiple brokerages downgrading the stock, driven by concerns over slowing advertising growth and a weaker revenue outlook [1] Group 1: Revenue Outlook - Pinterest projected first-quarter revenue between $951 million and $971 million, which is below the average analyst estimate of $980.1 million [2] - The revenue outlook indicates a contrast with stronger recent performances from competitors like Snap and Reddit [2] Group 2: Analyst Downgrades - Analysts at Evercore downgraded Pinterest's stock, citing a sustained deceleration in revenue growth and increasing competition from major platforms such as Google, Meta, and Reddit [3] - Bank of America also lowered its rating, noting that Pinterest's growth gap relative to the broader sector appears to be widening [4] Group 3: Competitive Pressures - The downgrades highlight potential risks from the possible return of TikTok in the U.S. market and the emergence of advertising tools from OpenAI [3] - Increased competition from AI-powered advertising tools at larger platforms could limit Pinterest's ability to secure additional advertising budgets [4] Group 4: Margin and Profit Growth - Bank of America suggested that Pinterest's margin expansion phase may have peaked, which could constrain profit growth moving forward [4]

Core Viewpoint - Pinterest's stock is experiencing a significant decline due to the impact of tariffs on its business, which is not in the expected manner [1] Group 1 - The company reported that its business has been adversely affected by tariffs, leading to a drop in stock value [1] - The nature of the impact from tariffs is different from what analysts had anticipated, suggesting unexpected challenges in the company's operations [1]

Pinterest, Inc. ( PINS ) cratered following its fourth quarter earnings release . The company’s results were not inspiring, as they featured decelerating growth even as its larger peer is going in the opposite direction. While theJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is the leader of the investing group Be ...

Core Insights - Pinterest, Inc. (PINS) experienced a significant decline in stock value following its fourth quarter earnings release, indicating disappointing financial results and decelerating growth compared to its larger competitors [1] Financial Performance - The company's fourth quarter results revealed a slowdown in growth, contrasting with the performance of larger peers in the industry [1] Analyst Perspective - The analysis highlights the importance of identifying undervalued companies with sustainable growth potential, emphasizing the need for strong balance sheets and effective management teams [1]

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Market Overview - The U.S. market closed with mixed results, as the Russell 2000 gained 1% driven by hopes of a rate cut, while large-cap indexes like the Dow and S&P 500 showed minimal changes, and the Nasdaq declined by 0.22% [2] - The Russell 2000 was noted to be leading the market with a 1.84% increase, while the S&P 500, Nasdaq, and Dow followed with gains of 0.62%, 0.55%, and 0.42% respectively [3][8] Winners - Evolution Metals & Technologies Corp saw a significant increase of 28%, leading the U.S. stocks, followed by Rivian Automotive at 27.1%, Tri Pointe Homes at 26.6%, and Magna International at 18.8% [4][5] - The market capitalization of Evolution Metals & Technologies Corp is reported at $5.79 billion, while Rivian Automotive has a market cap of $21.82 billion, and Tri Pointe Homes stands at $3.98 billion [5] Losers - Bright Horizons Family Solutions experienced the largest decline at 21.3%, with other notable decliners including Pinterest at 17.6%, Fortune Brands at 15.1%, and Callaway Golf also at 15.1% [6] - Prediction markets such as DraftKings and Flutter Entertainment saw declines of 13% and 11.6% respectively [6]

Core Viewpoint - Pinterest's stock has significantly declined by 22% following a disappointing Q1 revenue guidance, which fell short of analyst expectations, indicating underlying challenges despite a strong user base and revenue growth in Q4 [1] Group 1: Financial Performance - Pinterest reported Q4 revenue of $1.3 billion, a 14% year-over-year increase, but missed the $1.33 billion analyst consensus [1] - Monthly active users reached a record 619 million, up 12% year-over-year, marking the 10th consecutive quarter of growth [1] - Adjusted EBITDA was $542 million with a 41% margin, but net income dropped 85% to $277 million due to increased costs [1] Group 2: Revenue Guidance and Market Reaction - For Q1, Pinterest guided revenue between $951 million and $971 million, which is below the $981 million expected by analysts, reflecting an 11% to 14% growth [1] - The weak guidance led to at least seven firms downgrading Pinterest's stock ratings, with price targets reduced from the $38-$40 range to $19-$25 [1] Group 3: Advertising Challenges - Large retail advertisers have reduced spending on Pinterest due to tariff pressures and margin concerns, particularly in Europe where ad pricing fell by 19% despite a 41% increase in impressions [1] - Pinterest's visual discovery model struggles to compete with larger platforms like Meta, which offers superior targeting tools and a broader user base [1] Group 4: Valuation and Future Outlook - Pinterest's stock has decreased by approximately 53% over the past year, trading near six-year lows at around $14.50 per share [1] - Current valuations are low, with a trailing P/E of 5 and a forward P/E of 7, suggesting potential upside if growth resumes [1] - Management anticipates flat adjusted EBITDA margins at 30% for 2026, balancing investments with cost savings, but analysts express concerns over deteriorating fundamentals [1]

Market Overview - The Dow Jones Industrial Average rose by 230.75 points, an increase of 0.47%, closing at 49,682.73 points; the Nasdaq gained 85.93 points, up 0.38%, at 22,683.08 points; and the S&P 500 increased by 38.10 points, a rise of 0.56%, ending at 6,870.86 points [3][10] - The market is weighing the impact of artificial intelligence on various sectors, including logistics, real estate, and software [1][8] Company Performance - Applied Materials saw its stock price surge by 8.8% due to strong earnings and an encouraging outlook [3][10] - Airbnb's stock rose by 54.3%, reflecting investor optimism regarding the company's guidance [3][10] - Pinterest's stock plummeted by 17.8% after reporting fourth-quarter results that fell short of expectations and providing a weak outlook [3][10] Sector Analysis - Concerns about the disruptive effects of artificial intelligence have spread across multiple sectors, particularly real estate, trucking, and software, leading to a nearly 1.6% drop in the S&P 500 and approximately 2% decline in the Nasdaq on the previous day [3][10] - The "Tech Seven" giants all experienced declines, with Cisco Systems dropping 12% due to disappointing guidance, and Apple falling 5%, marking its largest single-day drop since April 2025 [3][10] Analyst Insights - Brian Levitt, a strategist at Invesco, noted that while there is a frenzy around AI, the market is becoming more discerning in identifying winners and losers, suggesting that the overall market remains robust despite some significant declines [3][10] - UBS strategists indicated that the full impact of AI on various industries and stocks is still to be observed, but they believe it validates the monetization potential of AI, making it a key component of investment portfolios [3][10] Software Sector Commentary - Dan Ives, a global technology research head at Wedbush Securities, stated that while some software stocks may suffer due to the rise of AI, not all should be dismissed, highlighting Salesforce and ServiceNow as potential core players in the AI revolution [4][11] - Ives criticized Wall Street for misjudging the widespread effects of AI across the tech sector, suggesting a significant disconnect in how the industry is perceived [5][11] Economic Data - The U.S. Consumer Price Index (CPI) for January rose by 2.4% year-over-year, a decrease of 0.3 percentage points from the previous month, marking the lowest inflation rate since April 2025 [6][13] - Core CPI, excluding food and energy, increased by 2.5%, aligning with economists' expectations [6][13] - The overall CPI rose by 0.2% month-over-month, while core CPI increased by 0.3%, both below market expectations [6][13]

Welcome to Market Catalyst. I'm Julie Hyman. We are 30 minutes into the US trading day. So, let's get to the three market catalysts we're watching this hour. First off, we'll have more on the latest inflation report as traders increase bets on rate cuts this year. Plus, the price is tight. We'll hone in on the state of the consumer as shoppers seek value as they navigate inflation. and we'll bring you the latest from Washington as President Trump looks to narrow the scope of his steel and aluminum tariffs. ...

Core Insights - Pinterest, Inc. reported mixed fourth-quarter 2025 results, with revenues missing the Zacks Consensus Estimate but adjusted earnings beating expectations [1] Financial Performance - Revenue for Q4 2025 was $1.32 billion, up from $1.15 billion in the prior-year quarter, but below the Zacks Consensus Estimate of $1.33 billion [5] - GAAP net income was $277.1 million or 41 cents per share, a significant decline from $1.85 billion or $2.68 per share in the prior-year quarter due to higher costs and income tax expenses [3] - Non-GAAP net income for Q4 2025 was $450.5 million or 67 cents per share, an increase from $385.6 million or 56 cents per share in the year-ago quarter, beating the Zacks Consensus Estimate by a penny [4] - For the full year 2025, GAAP net income was $416.9 million or 61 cents per share, down from $1.86 billion or $2.67 per share in 2024, while non-GAAP net income increased to $1.1 billion or $1.6 per share from $901 million or $1.29 per share in 2024 [4] User Engagement and Growth - Global monthly active users (MAUs) grew 12% year-over-year to 619 million, with significant growth in the Rest of World segment [5][7] - MAUs from the United States and Canada were 105 million, up 4% year-over-year, while Europe saw an increase to 158 million from 145 million in the year-ago quarter [7] Revenue Breakdown by Region - Revenues from the United States and Canada were $979 million, up 9% year-over-year, while Europe generated $245 million, a 25% increase from the prior-year quarter [6] - Revenues from the Rest of World rose to $96 million from $58 million in the prior-year quarter, exceeding revenue estimates [6] Average Revenue Per User (ARPU) - Global ARPU for Q4 2025 was $2.16, up from $2.12 in the year-ago quarter, with notable increases in Europe (15% year-over-year) and the Rest of World (42% year-over-year) [8] Cash Flow and Liquidity - Pinterest generated $391.2 million in cash from operations in Q4 2025, compared to $254 million in the year-earlier quarter, and $1.28 billion for the full year 2025, up from $964.6 million in 2024 [11] Outlook - For Q1 2026, Pinterest expects revenues in the range of $951-$971 million, indicating 11-14% year-over-year growth, with adjusted EBITDA projected between $166-$186 million [12]