Pinterest’s stock price jumped 18% in early trading after the social media platform reported better-than-expected fourth-quarter earnings and a strong sales outlook. The San Francisco-based firm said revenue reached $1.15 billion, surpassing forecasts and marking its first billion-dollar quarter.
Ad impressions increased by more than 40% in the final quarter of 2024, with advertisement clicks growing faster than ad impressions. Pinterest’s AI ad optimization tool is set to become available to all advertisers in the first quarter, which analysts expect will drive sustainable revenue growth in 2025.
The company’s monthly active users reached a record 553 million, and CEO Bill Ready said that people are coming to Pinterest more often, making it “the most actionable platform” ever. The critical holiday season saw products featured in gift guides receive 40% more clicks than average items on the app.
However, Pinterest’s annual report warned that its efforts around diversity, equity, and inclusion (DEI) could be a potential business risk if not executed correctly. The company highlighted the importance of attracting and retaining talent and protecting its brand reputation and stock price.
Following the strong earnings report, Bernstein has upgraded Pinterest’s stock price target to $47, citing the company’s “executive performance” across all areas.
Source: https://finance.yahoo.com/news/pinterest-jumps-18-reporting-first-234900061.html