Core Viewpoint - Pinterest's CEO Bill Ready made a controversial decision to prioritize user well-being over short-term engagement metrics, which initially led to a significant drop in stock price but has since shown positive results in user growth and engagement [1][5][14]. User Growth and Engagement - Pinterest now boasts over 570 million active users, with Generation Z making up more than 40% of this demographic, marking it as the largest and fastest-growing user group [2]. - Since Ready took over as CEO in June 2022, Pinterest's stock price has surged by 86%, although it remains down 58% from its all-time high in February 2021 [3]. Strategic Decisions - In 2023, Pinterest became the first major platform to set accounts of users under 16 to "private by default," aiming to protect young users from unwanted interactions [4]. - This decision initially caused investor concerns about user engagement, resulting in a 26% drop in stock price from April 14 to May 5, 2023 [5]. Long-term Vision - Ready emphasizes that focusing on user health rather than merely increasing usage time can lead to sustainable growth for the platform [6][10]. - Unlike other social media platforms that optimize algorithms for engagement based on emotional reactions, Pinterest redesigned its AI to prioritize content that users consciously choose to revisit [7][8]. Targeting Generation Z - Ready's strategy resonates particularly well with Generation Z users, who appreciate Pinterest as a healthier alternative to other social media platforms [9][10]. - The platform's initiatives include encouraging users to engage with the app outside of school hours and promoting a no-phone policy in schools [11][12]. Market Positioning - Pinterest's success in attracting younger users has allowed it to reverse a trend of aging user demographics and user attrition [15]. - This growth has positioned the company to capture market share even amid economic uncertainty and a downturn in the advertising industry [16].