Core Insights - Pinterest Inc. reported mixed third-quarter results, with revenue of $1.0 billion, a 16.8% year-over-year increase, but earnings fell short of consensus estimates, indicating challenges in the advertising landscape [1] - Adjusted EBITDA reached $306 million with a 29.2% margin, surpassing consensus by 4% and representing a 170-basis-point margin expansion [2] Revenue Outlook - For the fourth quarter, Pinterest projects revenue growth of 13.8% to 15.9% year-over-year, estimating revenue between $1.31 billion and $1.34 billion, with the midpoint trailing Street expectations by approximately 100 basis points [3] - The company anticipates Adjusted EBITDA to range between $533 million and $558 million, compared to a prior estimate of $546 million [3] Analyst Revisions - Following the cautious revenue outlook, Wedbush Securities analysts lowered their 12-month price forecast on Pinterest to $34 from $44 while maintaining an Outperform rating, citing moderating ad spend among large U.S. retailers affected by tariff pressures [4] - Wedbush trimmed its growth forecasts, projecting a three-year revenue Compound Annual Growth Rate (CAGR) of 14.5%, down from 15.1%, but noted that Pinterest remains positioned to meet its intermediate-term targets [6] Long-Term Concerns - Rosenblatt analyst Barton Crockett expressed concerns about long-term structural risks due to the rapid advancement of AI technologies, which could overlap with Pinterest's core use case, leading to potential existential challenges [9] - The firm downgraded Pinterest to Neutral and cut its price forecast by $19 to $30, based on a 12x 2026E EV/EBITDA multiple [9] Market Dynamics - Analysts highlighted rising risks from AI-driven competitors, which may offset easing year-over-year comparisons in consumer packaged goods, with concerns that sustaining growth could become difficult if AI-powered chatbots evolve into alternative platforms for discovery and engagement [10] - Pinterest's core U.S. and Canada market, accounting for about 75% of sales, is pressured by new tariffs and weaker retail ad spending, although stronger gains in Europe and other regions provide some offset [11]

Core Insights - Pinterest Inc (NYSE:PINS) is a social media platform that allows users to discover and save ideas through images and videos, competing with major players like Facebook and Instagram [1] - Wells Fargo has set a price target of $35 for Pinterest, indicating a potential increase of 6.35% from its current trading price of $32.91 [1][5] - Recent disappointing third-quarter sales have led analysts to lower their forecasts for Pinterest, impacting market perception of its financial health and growth prospects [2][5] Stock Performance - Pinterest's stock is currently priced at $32.91, down 2.34% today, with a decrease of $0.79 [3][5] - During the trading day, the stock reached a low of $32.50 and a high of $33.35 [3] - Over the past year, Pinterest's stock has fluctuated between a high of $40.90 and a low of $23.68 [3] Market Metrics - Pinterest has a market capitalization of approximately $22.38 billion, reflecting its size and value in the market [4] - Today's trading volume for Pinterest is 13.77 million shares, indicating significant investor interest and activity [4][5]

Core Insights - Pinterest is focusing on leveraging open-source AI models to reduce costs while expanding its visual AI capabilities [1][5][6] - The company is facing challenges with a predicted weaker holiday shopping season, impacting its fourth-quarter revenue expectations [4] - Pinterest is exploring agentic commerce and enhancing user experience through AI-driven features like Pinterest Assistant [3][10][11] Financial Performance - Pinterest's fourth-quarter revenue is projected to be between $1.31 billion and $1.34 billion, below analysts' expectations of $1.34 billion [4] - The stock price dropped by over 21% following the earnings announcement due to these revenue concerns [4] AI and Technology Utilization - CEO Bill Ready emphasized the effectiveness of open-source models, which have shown significant cost reductions while maintaining comparable performance to proprietary models [6] - The company is actively testing and implementing open-source AI models for various use cases, aiming for cost efficiency [5][6] User Experience and Features - Pinterest is enhancing its shopping experience with AI, including features like "push-button type buying" through partnerships [10] - The introduction of Pinterest Assistant aims to provide personalized recommendations and guidance based on user preferences [11][12]

Core Viewpoint - The Motion Picture Association has issued a cease-and-desist letter to Meta, challenging the use of filters based on the PG-13 movie rating system for content moderation on its platform [1] Group 1 - The Motion Picture Association is concerned about the implications of using a movie rating system for moderating content on social media [1] - The cease-and-desist letter indicates potential legal action if Meta does not comply with the request [1] - This action highlights ongoing tensions between content creators and social media platforms regarding content regulation and intellectual property rights [1]

PAUL FAITH / AFP / Getty Images Seagate Technology was the best-performing stock in the S&P 500 Wednesday afternoon Key Takeaways Tech stocks rebounded from Tuesday's losses to help boost the major U.S. equities indexes Wednesday afternoon. Seagate Technology and other data storage stocks led gains on the S&P 500. McDonald's shares also climbed as its U.S. same-store sales exceeded expectations. Tech stocks rebounded from Tuesday's losses to help boost the major U.S. equities indexes Wednesday af ...

Market Overview - U.S. markets opened with small caps in the Russell 2000 leading at +0.41%, while large cap indexes like Nasdaq (+0.10%), Dow (+0.07%), and S&P 500 (+0.01%) showed little change [2] - Gold is approaching $4,000, with a +0.77% increase, while the 10-Year Treasury yield rose by +2.3 basis points to 4.114% [3] Employment Data - The ADP Employment Change report indicated an addition of 42,000 jobs in October, marking the first increase since July, which may have contributed to a turnaround in U.S. equities [3] Political and Economic Developments - Trump's emergency use power tariffs are set to be argued at the Supreme Court, following overturns by two lower courts, with potential implications for U.S. trade policy depending on the court's ruling [4] - The U.S. government shutdown has reached day 36, becoming the longest in history, with limited progress on reopening as Republicans are unlikely to pursue the 'nuclear option' [5]

Financial Performance - Pinterest's EPS missed expectations, leading to a weak Q4 revenue outlook [1] - Shares are down over 20%, pacing for the worst day since May 2022 [1] Market Trends & Industry Dynamics - Pinterest cites macro headwinds and moderating ad spend in the US and Canada [2] - Larger US retailers are dealing with tariff-related issues, impacting the home furnishing category [2] - RBC indicates weakness in Pinterest's digital ads universe, reinforcing lack of customer diversity and higher macro sensitivity [3] Analyst Ratings & Perspectives - 81% of analysts still have an outperform or buy rating on Pinterest [2] - JP Morgan remains overweight on the stock, citing user growth, deepening engagement, and overall monetization potential [3] - JP Morgan notes Pinterest's exposure to big retailers may keep shares rangebound near term [3]

Core Insights - Pinterest's shares are experiencing a significant decline, dropping over 20% following disappointing earnings per share (EPS) and a weak revenue outlook for Q4 [1][2] - The company is facing macroeconomic headwinds, particularly in the US and Canada, with larger retailers affected by tariff-related issues [2] Financial Performance - Pinterest reported a miss on EPS and provided a weak revenue forecast for the fourth quarter, contributing to the stock's sharp decline [1] - The stock is on track for its worst day since May 2022, indicating severe market reaction to the earnings report [1] Market Trends - The company is observing a moderation in ad spending, particularly in the home furnishing category, which is expected to be impacted by a new tariff in Q4 [2] - Analysts are responding to the earnings report with a mix of lowered price targets, although 81% still maintain an outperform or buy rating on the stock [2] Analyst Opinions - RBC highlighted that the weakness in digital ads is a concern, emphasizing Pinterest's lack of customer diversity and higher sensitivity to macroeconomic factors [3] - JP Morgan remains optimistic about Pinterest, citing potential for user growth, deeper engagement, and overall monetization despite near-term challenges [3]

Core Insights - Pinterest shares dropped 20% following disappointing third-quarter earnings, with advertising revenue impacted by larger retailers facing tariff challenges [1] - The company reported adjusted earnings of 38 cents per share, below the expected 42 cents, while revenue met estimates at $1.05 billion [1] Financial Performance - Third-quarter sales in the U.S. and Canada were $786 million, falling short of StreetAccount's estimate of $799 million [2] - The finance chief indicated that there were "pockets of moderating ad spend" due to pressure on margins from tariffs affecting larger U.S. retailers [3] Market Dynamics - Analysts noted that tariff-related weaknesses are emerging in the digital advertising space, highlighting Pinterest's lack of customer diversity and increased macro sensitivity [2] - Several banks have lowered their price targets for Pinterest, citing rising competition from platforms like Instagram and TikTok, as well as macroeconomic headwinds [4] - Despite concerns, 81% of analysts still maintain an outperform or buy rating for the company [4]

Core Insights - The U.S. equity markets have experienced significant volatility due to strong quarterly performances from blue-chip tech companies and concerns over the high valuations of AI firms, leading to expectations of a market correction [1][2] - The ongoing U.S. government shutdown, now in its 36th day, has added to investor uncertainty, impacting market sentiment [2] - Despite these challenges, a strong start to the earnings season, particularly from tech companies, has provided some market support [2] Momentum Investing Strategy - Momentum investing is characterized by the strategy of "buying high and selling higher," capitalizing on established trends in stock prices [3] - This strategy has historically generated alpha across various market conditions, although it requires skill to identify trends effectively [4] - A screening process has been developed to identify stocks with strong momentum, focusing on long-term price appreciation and short-term pullbacks [5][6][7] Selected Momentum Stocks - Shopify Inc. (SHOP) has seen a price increase of 102.3% over the past year but experienced a 10.1% decline in the last week, holding a Momentum Score of B [9][11] - Boot Barn Holdings, Inc. (BOOT) has gained 42% in the past year, with a recent decline of 6.9%, and holds a Momentum Score of A [9][13] - Reddit, Inc. (RDDT) has climbed 53.2% over the past year but has seen an 11.8% drop in the last week, also holding a Momentum Score of A [9][15]