Pinterest Rises on Strong Q1, Upbeat Forecast

Pinterest reported a 16% year-over-year increase in first-quarter revenue to $855 million and a 10% rise in global monthly active users to 570 million, both surpassing Wall Street expectations. Although adjusted earnings per share slightly missed estimates, Pinterest issued a strong second-quarter revenue forecast of $960 million to $980 million, which exceeded analyst expectations and triggered a double-digit surge in its share price. The company's resilience amid global economic uncertainty and tighter ad budgets is credited to investments in artificial intelligence and a growing Gen Z user base, now over 40% of users. AI-driven ad personalization and direct response ads have made Pinterest more appealing to advertisers, which has helped offset challenges from reduced ad spending by Asian e-commerce firms due to trade policy changes. Pinterest's positive outlook aligns it with Meta and Reddit, which also reported strong digital ad markets, while contrasting with Snap, which withheld guidance. CEO Bill Ready highlighted Pinterest’s strategic execution and evolving AI capabilities as key drivers of engagement and monetization.