Pinterest (PINS) has had a roller coaster of a year with volatility around its quarterly earnings reports. The volatility has had a lot to do with overpromising and underdelivering, something quite common with companies looking to come out of the shadows of larger competitors, as PINS does in the form of other social media giants like Meta Platforms (META) and Google (GOOGL). The Q2 earnings report at the beginning of August acted as a reality check, as the company was unable to beat EPS expectations despi ...

Core Insights - Pinterest, Inc. (PINS) and Etsy, Inc. (ETSY) are key players in the social e-commerce sector, focusing on discovery-driven shopping experiences that blend social inspiration with e-commerce to capture consumer spending trends online [1][2] - Pinterest offers a platform for users to save and organize visual recommendations, generating revenue through ads targeted at millennials and Gen Z [1] - Etsy operates a two-sided marketplace that allows merchants to manage products and customer relationships, supported by a strong technology infrastructure [2] Pinterest's Competitive Position - Pinterest is establishing a unique value proposition for advertisers, improving its advertising platform to attract consumer discretionary brands [4] - The company is enhancing operational rigor and utilizing AI to improve relevancy and personalization, which is expected to yield long-term benefits [5] - Pinterest projects a sales growth of 15.8% and EPS growth of 33.3% for 2025, indicating strong future performance [8][11] Etsy's Competitive Position - Etsy is enhancing customer experience through personalized shopping experiences, utilizing AI and machine learning for better engagement [7] - The company expects a modest sales growth of 1.3% for 2025, but a significant decline in EPS by 43.4% [8][13] - Etsy's subsidiary, Depop, has shown strong growth, particularly in the U.S. market, contributing positively to overall performance [9] Market Dynamics - Pinterest's stock has gained 23.5% over the past year, while Etsy's has only increased by 6.8% [14] - From a valuation perspective, Pinterest trades at a higher price/sales ratio of 5.3 compared to Etsy's 1.98, indicating a premium valuation for Pinterest [15] - Both companies carry a Zacks Rank 3 (Hold), but Pinterest is viewed as a better investment option due to its superior growth expectations and operating metrics [16][17]

AI is doing a lot of heavy lifting for Pinterest (PIN) as it wins over younger users. "We've had a significant resurgence of the platform," Pinterest CEO Bill Ready told Yahoo Finance's Executive Editor Brian Sozzi at Goldman Sachs' Communacopia + Technology Conference. "Gen Z is now more than 50% of the platform, our largest, fastest-growing demographic. At the core of that is they're coming to Pinterest because they're getting really great AI-enabled shopping recommendations that are personally relevan ...

Group 1: Investment Opportunities - Pinterest, United Parcel Service (UPS), and Comcast are identified as stocks trading under $100 that present potential bargain buys [2] - Pinterest shares are currently around $35, having risen 24% since the start of the year, with a price-to-earnings ratio of 13 and a PEG ratio of approximately 0.8, indicating it is a cheap growth stock [5][6] - UPS is trading below $90, facing macroeconomic challenges but remains a long-term investment due to the growing e-commerce sector and its strategic decisions to improve profitability [7][9][10] - Comcast is trading around $34 with a P/E ratio of less than 6, and plans to spin off cable TV networks to focus on higher-growth areas like streaming, which could enhance its growth potential [11][12][13] Group 2: Company Performance Metrics - Pinterest's revenue increased by 17% in the last quarter, reaching just under $1 billion, with monthly active users growing by 11% to 578 million [6] - UPS is currently trading at a P/E multiple of 13, suggesting potential upside as economic conditions improve [10] - Comcast has a high debt load of approximately $100 billion but maintains an operating margin of around 20% over the past six months, indicating strong profitability [12][13]

Group 1: Market Overview - A softer-than-expected July inflation report has improved investor sentiment and revived hopes for a rate cut [1] - Traders are awaiting more economic data to gain further insights about the state of the U.S. economy [1] Group 2: Stock Recommendations - Investors are encouraged to search for stocks with strong long-term growth potential to enhance portfolio returns [2] - Recommendations from top Wall Street analysts can assist in identifying attractive stocks based on in-depth analysis of financials and growth prospects [2][3] Group 3: Pinterest (PINS) - Pinterest reported mixed results for Q2 2025, with revenue surpassing expectations but earnings missing consensus estimates [4] - BMO Capital analyst Brian Pitz increased the price forecast for Pinterest stock to $41 from $40 and reiterated a buy rating [5] - Q2 performance was impacted by a 25% drop in advertising pricing due to rising market share in previously unmonetized markets [6] - Pitz views Pinterest as a "Clear AI Winner," benefiting from AI-powered search functions and algorithm upgrades [7] - Gen-Z constitutes more than half of Pinterest's user base, providing valuable customer insights for advertisers [8] Group 4: CoreWeave (CRWV) - CoreWeave reported market-beating revenue for Q2 and issued better-than-anticipated guidance for Q3, but reported a larger-than-expected loss [9] - Jefferies analyst Brent Thill reiterated a buy rating on CoreWeave stock with a price target of $180, highlighting an 86% year-over-year jump in remaining performance obligations (RPO) [10] - Thill remains optimistic due to expansion deals with two hyperscalers and a ramp-up in capacity, adding 600 megawatts of contracted power [11] Group 5: Starbucks (SBUX) - Jefferies analyst Brent Thill upgraded Starbucks stock to buy from hold and increased the price target to $115 from $100 [13] - The stock has underperformed, sinking by 16% over the past six months, but Thill believes the risk/reward profile has improved [13] - Turnaround initiatives under new leadership are expected to drive improvement in U.S. comparable sales in Fiscal 2026 [13] - Thill anticipates gaining more visibility on Starbucks' earnings outlook as turnaround efforts become clearer, particularly regarding cost-saving initiatives [14] - The goal is to revive operating margins to 17% seen in Fiscal 2019, compared to 10.3% in Fiscal 2025 [14]

Core Insights - Pinterest, Inc. (PINS) reported modest second-quarter 2025 results, with revenues beating estimates while the bottom line missed expectations, driven by strong year-over-year revenue growth across all regions [1] - The company is focusing on enhancing shoppability and monetization potential through advanced AI tools, which has contributed to top-line growth [1][5] User Engagement and Market Position - Pinterest has carved out a niche in the digital market by catering to users' discovery mindset, which presents opportunities for advertisers as users are open to purchasing [2] - The platform is establishing a unique value proposition for advertisers, improving its advertising capabilities, and offering features like the Verified Merchants Program to enhance shoppability [3] Content and Engagement Initiatives - Pinterest is enhancing actionable content from various sources, resulting in improved engagement metrics such as sessions, impressions, and saves [4] - The company is experiencing healthy traction in emerging verticals like men's fashion, auto, health, and travel, which are contributing to its growth [4] Operational Focus and AI Integration - The focus on operational rigor and the use of sophisticated AI models is expected to yield long-term benefits, with new ad tools being developed to enhance monetization [5] - A partnership with Amazon.com, Inc. aims to capitalize on user commercial intent and increase shoppability on the platform [5] Strategic Acquisitions - The acquisition of The Yes, an AI-powered fashion-shopping platform, is aimed at enhancing the shopping experience and aligning with Pinterest's vision of helping customers find products that match their tastes [6] Financial Performance and Estimates - Pinterest's revenue growth is supported by strong user engagement, with a 17% stock price increase over the past year, although it lags behind the industry growth of 43.5% [11] - Earnings estimates for 2025 have increased marginally to $1.81, indicating bullish sentiment among investors regarding the stock's growth prospects [12] Challenges and Competition - High operating costs are expected to increase due to expansion efforts, which may strain margins [7] - Pinterest faces significant competition from larger companies and smaller firms offering similar content and commerce opportunities [8][9]

Core Insights - Pinterest CEO Bill Ready indicated that it will take time for consumers to trust AI agents for shopping, but the company is developing AI tools to assist users in their shopping journey [1][2] - Ready emphasized that AI is central to Pinterest's operations, enhancing user experience by providing personalized recommendations and curating products based on subtle user signals [4][5] AI Integration and User Experience - Pinterest is focused on using AI and large language models (LLMs) to create a user-centric shopping experience, aiming to make discovery enjoyable and shopping seamless [5] - The company has observed positive early signs of AI's impact on user engagement and shopping assistance [5] Industry Trends - A report highlighted that 54% of retailers have adopted generative AI in the past year to analyze transaction and payment data for customer segmentation, indicating a broader trend in the retail industry towards enhanced customer personalization [6]

Core Viewpoint - Pinterest, Inc. reported modest first-quarter 2025 results with net income missing estimates while revenues exceeded expectations, driven by strong growth across all regions and enhanced monetization efforts [1][2]. Financial Performance - Net income on a GAAP basis was $8.9 million, or $0.01 per share, compared to a net loss of $24.8 million, or a loss of $0.04 per share, in the prior-year quarter [2]. - Non-GAAP net income was $159.6 million, or $0.23 per share, up from $119.8 million, or $0.17 per share, in the year-ago quarter [2]. - Revenues increased to $855 million from $740 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $846 million [3]. User Growth - Global monthly active users (MAUs) grew by 10% year-over-year to reach 570 million, marking an all-time record [3]. - MAUs in the United States and Canada were 102 million, up 4% year-over-year, exceeding estimates [7]. - The Rest of World segment registered MAUs of 320 million, up 14% from the previous year [7]. Revenue Breakdown - Revenues from the United States and Canada totaled $663 million, a 12% year-over-year increase, although it missed the revenue estimate of $678.3 million [6]. - European revenues reached $147 million, up 24% from $118 million in the year-ago quarter, surpassing the estimate of $129.3 million [6]. - Revenues from the Rest of World increased to $45 million from $30 million, exceeding the revenue estimate of $38.9 million [6]. Average Revenue Per User (ARPU) - Global ARPU stood at $1.52, compared to $1.46 in the year-ago quarter [8]. - ARPU in Europe improved by 17% year-over-year to $1.00, while in the United States and Canada, it rose by 8% to $6.54 [8]. - ARPU from the Rest of World increased by 29% year-over-year to $0.14 [8]. Operational Efficiency - Adjusted EBITDA was $172 million in Q1 2025, up from $126 million in the prior-year quarter, reflecting a 36% year-over-year improvement [9]. - Total costs and expenses rose to $890.5 million from $794.4 million in the year-ago quarter [9]. Cash Flow and Liquidity - The company generated $363.7 million in cash from operating activities, compared to $356.1 million in the prior-year quarter [10]. - As of March 31, 2025, Pinterest had $1.25 billion in cash and cash equivalents [10]. Outlook - For Q2 2025, Pinterest expects revenues in the range of $960-$980 million, indicating a year-over-year growth of 12-15% [11]. - Management anticipates adjusted EBITDA to be between $217-$237 million [11].

Core Viewpoint - Analysts expect Pinterest to report quarterly earnings of $0.25 per share, reflecting a 25% year-over-year increase, with revenues projected at $845.74 million, up 14.3% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised downward by 30.8% in the past 30 days, indicating a reassessment by covering analysts [1][2] Revenue Estimates by Geography - Geographic Revenue for Europe is expected to reach $140.71 million, a 19.3% increase year-over-year [4] - Revenue from the Rest of the World is projected at $46.93 million, indicating a significant 56.4% year-over-year growth [4] - U.S. and Canada revenue is estimated at $658.10 million, reflecting an 11.2% increase from the prior year [4] Monthly Active Users (MAU) Estimates - Global Monthly Active Users are projected to reach 562 million, up from 518 million year-over-year [5] - International Monthly Active Users are estimated at 313 million, compared to 279 million in the same quarter last year [5] - U.S. and Canada Monthly Active Users are expected to be 101 million, an increase from 98 million year-over-year [5] Additional Metrics - Monthly Active Users in Europe are forecasted to reach 148 million, up from 140 million year-over-year [6] - Average Revenue Per User (ARPU) in the U.S. and Canada is projected at $6.62, compared to $6.05 in the same quarter last year [6] Stock Performance - Pinterest shares have returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [7]

Core Insights - Pinterest (NYSE: PINS) presents an attractive growth narrative for investors, with projected revenue of $3.65 billion in 2024, reflecting a 19% year-over-year increase, and a rise in monthly active users (MAUs) by 11% to 553 million [1] Revenue and User Growth - In 2024, Pinterest is expected to achieve $3.65 billion in revenue, marking a 19% increase compared to the previous year [1] - The company’s MAUs increased by 11%, reaching 553 million [1] - Analyst consensus from Refinitiv anticipates continued MAU growth of over 10% in 2025, alongside revenue growth [1]