Latest news with #BillReady
Yahoo
7 days ago
- Business
- Yahoo
Pinterest, Inc. (PINS): It's A 'Remarkable Site,' Says Jim Cramer
We recently published . Pinterest, Inc. (NYSE:PINS) is one of the stocks Jim Cramer recently discussed. A young, stylish woman using her smartphone to find inspiration for her latest DIY project. Pinterest, Inc. (NYSE:PINS) operates a website that enables users to engage in artistic endeavors such as arts and crafts and home decoration. The firm's shares have gained 24% year-to-date and have gained 53% since their early-April drop. The stock has benefited from several catalysts, such as analyst upgrades and strong earnings performance. Cramer's a fan of Pinterest, Inc. (NYSE:PINS): 'I'm always looking for companies like Square now Block, that could take off even if it doesn't get added to the S&P. And there are a couple of notes about Pinterest. I think that Bill Ready has done a remarkable job as CEO. Pinterest is going to be a part of what's scraped by these, the five big ones. And we should highlight the five big ones, they do matter. And I just think Pinterest is a place where people go to learn, and people go to have crafts. It's an underrated site. It's 25 billion. It could be 50 billion. While we acknowledge the potential of PINS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
26-06-2025
- Business
- Yahoo
The decision that tanked Pinterest's stock helped make it a Gen Z winner
Pinterest CEO Bill Ready made the controversial decision to turn off social features for users under 16, causing the stock to drop 26% as Wall Street predicted it would kill the platform's appeal to Gen Z. Instead, the move helped Pinterest, with Gen Z now representing over 40% of its user base who view the platform as 'an oasis away from toxicity.' Pinterest CEO Bill Ready made a decision three years ago that Wall Street didn't like: He would prioritize the long-term well-being of users over short-term engagement metrics, even if it meant watching the company's stock price tumble. The gamble has paid off. The visual discovery platform now boasts more than 570 million active users, with Generation Z representing over 40% of its user base—its largest and fastest-growing demographic. Pinterest's stock price today sits up 86% from when Ready took over as CEO in June 2022, although it remains 58% down from its all-time high amid the COVID pandemic in February 2021. 'There's a good business in positivity,' Ready told Fortune in an interview at Cannes Lions. 'We can do well by doing good, and it really is about short-term versus long-term.' After taking the reins at Pinterest, Ready's most controversial move came in 2023, when Pinterest became the first major platform to make accounts for users under 16 private-only by default, preventing young users from being discoverable to strangers online and restricting certain social features. The decision triggered immediate backlash from investors concerned about user engagement, with the stock price plunging 26% between April 14 and May 5, 2023. 'When we announced that, people thought it would be our death with Gen Z,' Ready recalled. 'But a year later we had nearly doubled because it was core to why we won with Gen Z.' Ready's somewhat contrarian approach reflects his broader philosophy that platforms can thrive by focusing on user health rather than maximizing screen time. Unlike other social media companies that optimize algorithms to show users content that triggers the strongest reactions, Pinterest redesigned its artificial intelligence to prioritize what users consciously choose to see again, not just what captures their attention momentarily. 'Social media became toxic when it switched from being a chronological feed of what your friends posted to what the AI thought you should see,' Ready explained. 'The AI figured out you look longer at the things that trigger you. We [the tech industry] started tuning for maximizing view time with the same triggering content rising to the top.' Pinterest's algorithm now appeals to what Ready calls 'conscious choice versus unconscious choice.' Using the metaphor of drivers slowing down to look at car accidents, Ready noted that while people may glance at disturbing content, they don't actually want to see more of it. 'If you ask somebody afterwards, 'Would you like to see another one?' The vast majority of people say, no, that was terrible.' The strategy has resonated particularly well with Gen Z users. 'If you ask a Gen Z user why do you go to Pinterest, there's two things they'll reliably tell you,' Ready said. 'The first, Pinterest just gets me. But the other really big part is they see Pinterest as an oasis away from the toxicity they experience elsewhere online. 'It shouldn't be controversial to say that we should be committed to the long-term health of our users. But what I'm trying to prove is that there's a good business in positivity.' The company has quickly extended its youth-focused initiatives beyond privacy settings. Pinterest shows pop-up messages to school-age users during school hours, encouraging them to return after classes, although this prompt can be ignored and bypassed. It has also advocated for phone-free schools while working with politicians and regulators on both sides of the Atlantic. Ready acknowledges the pressure that comes with making decisions that initially displease investors. 'You've got to have the conviction and the courage to say no, I believe this is right, but I'm going to see it through,' he said. 'But you also have to deliver results.' For Pinterest, those results have validated Ready's long-term approach. The platform has achieved what Ready calls 'something that is extremely rare amongst consumer apps'—it is 'actually aging down' by successfully attracting younger users, reversing a previous trend of aging up and out. The company's success during the advertising industry downturn has positioned it to take market share as economic uncertainty continues. 'My bet was that if we give them an alternative, they're going to choose it,' Ready said of Gen Z users. 'Fortunately, that's worked out for us.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Magazine
17-06-2025
- Business
- Time Magazine
At TIME100 Talk, Executives Discuss the Power of Digital Inclusivity and Positivity
For most people across the globe, social media is a daily part of life. Billions of people interact with brands, stories, influencers, and other content across various platforms everyday. With the impact that this content carries for consumers, discussing positivity, inclusivity, and the role that brands play is essential. At the Cannes Lions International Festival, TIME CEO Jessica Sibley hosted a roundtable talk with industry leaders to discuss what they are up to in a rapidly changing online environment. The discussions began when CEO Bill Ready of Pinterest—which presented the event—brought up the challenges young people face today, and the importance of cultivating a healthy online platform. He recalls one decision he made to limit access to harmful content for those under 16. 'As a parent, I truly believed I didn't want young people engaging with strangers online,' he said. Ready said that younger users have taken notice of Pinterest's overall approach as a platform where you can 'get away from the toxicity elsewhere.' Others business leaders echoed similar concerns. Jim Steyer, founder and CEO of Common Sense Media, which reviews the safety of social media platforms, said that his biggest worry is that 'we have waited a long time to deal with' the issue and that it's important to young people everywhere. 'The same concerns we have in the U.S. are global,' he adds. Brieane Olson, CEO of retail company PacSun, says that businesses need to learn about the needs and wants of Gen Z users. 'What has surprised me the most is how misunderstood Gen Z has become through the digital lens,' she said. 'As adults in the room,' added Sadé Mohammed, the Chief Impact and Marketing Officer at TIME, 'there's a feeling of not being included in real life. I think about what we can do to facilitate that community in person instead.' Some executives also highlighted the needs of specific younger audiences. Laurie Lam, Chief Brand Officer at e.l.f. Beauty, a cosmetics firm in California, said more companies need to focus on making young women feel seen and heard. 'As a mom to two girls, our ethos is so rooted in lifting [up] others,' she said. For her part, Ndidi Oteh, incoming CEO of Accenture Song, a creative agency, raised the question of brand accountability. 'It's a reoccurring theme, how do you hold your influencers accountable, how do you make sure that you act with responsibility … to make sure that we're actually moving towards a more positive world.' Industry leaders at the roundtable in Cannes also shed light on their own personal challenges. Erin Andrews, a sports broadcaster and co-founder of women's apparel company WEAR, revealed her experiences in the spotlight. Over time, she said, she found herself more open about her private life, including her treatment for cervical cancer. "It was really difficult," she said. Andrews continues to stay motivated about getting female fans to attend games. 'It brings tears to my eyes when dad's come up to me and say 'I want my daughter to do what you do',' she said. Other attendees of the rountable included Aki Mandhar, CEO of Chelsea Women FC; Lisa McKnight, Chief Brand Officer and Executive Vice President at Mattel; Jimmy Smith, CEO & Chief Creative Officer at Amusement Park Entertainment; Casper Lee, Chief Vision Officer at Creator Ventures; Alexis Ohanian, Founder of Seven Seven Six and Athlos; Rachel Delphin, Chief Marketing Officer of Twitch; Carla Hassan, Chief Marketing Officer at JP Morgan Chase; Andréa Mallard, Global Chief Marketing Officer at Pinterest; and Renata Ferraiolo, CEO of SC Johnson Lifestyle Brands and Blakely Thornton, Culture Critic and Podcast Host.
Yahoo
10-06-2025
- Business
- Yahoo
PINS Q1 Earnings Call: AI-Driven Product Enhancements Support User Growth and Advertiser Adoption
Social commerce platform Pinterest (NYSE: PINS) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 15.5% year on year to $855 million. Guidance for next quarter's revenue was better than expected at $970 million at the midpoint, 0.6% above analysts' estimates. Its non-GAAP profit of $0.23 per share was 9.8% below analysts' consensus estimates. Is now the time to buy PINS? Find out in our full research report (it's free). Revenue: $855 million vs analyst estimates of $846.9 million (15.5% year-on-year growth, 1% beat) Adjusted EPS: $0.23 vs analyst expectations of $0.26 (9.8% miss) Adjusted EBITDA: $171.6 million vs analyst estimates of $162.6 million (20.1% margin, 5.6% beat) Revenue Guidance for Q2 CY2025 is $970 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $227 million at the midpoint, below analyst estimates of $230.8 million Operating Margin: -4.1%, up from -7.4% in the same quarter last year Monthly Active Users: 570 million, up 52 million year on year Market Capitalization: $23.1 billion Pinterest's first quarter performance reflected continued momentum in user engagement and product innovation, with management emphasizing the platform's growing appeal to Gen Z and international audiences. CEO Bill Ready highlighted investments in visual search and multimodal AI models as central to improving relevance and actionability for users. Management credited deeper engagement across all core regions to these enhancements, while also citing the improved ability of advertisers to reach high-intent audiences. CFO Julia Donnelly noted that strength in retail and emerging verticals, such as financial services and technology, contributed to revenue gains, as Pinterest's evolving performance ad suite and measurement tools attracted more sophisticated marketers. Looking ahead, Pinterest's leadership expects ongoing investment in AI-driven personalization and international expansion to support further revenue growth and margin improvement. Management believes that broadening adoption of the Performance+ ad suite, enhancements in measurement capabilities, and continued penetration into under-monetized markets will be key drivers. CEO Bill Ready stated, 'We still have a lot more in front of us than behind us,' emphasizing that adoption of new tools and international monetization remain in early stages. CFO Julia Donnelly cautioned that while the company anticipates margin expansion for the full year, the pace will be slower than in previous periods due to increased R&D and marketing investments. Management attributed the quarter's performance to user growth, AI-powered product advancements, and increased adoption of lower-funnel ad tools, particularly in international markets. AI-driven personalization: Pinterest's proprietary multimodal AI model now powers visual search and content recommendations, allowing for more relevant and actionable user experiences. This model, which interprets both images and text, is 30% more likely to generate relevant results than leading off-the-shelf models, according to management. Performance+ ad suite rollout: The company expanded its Performance+ suite, integrating new creative and bidding features. Management reported that 80% of campaigns using Performance+ outperform traditional campaigns, and advertisers adopting these tools see higher conversion rates and increased efficiency. International monetization progress: Revenue from Pinterest's shopping ad formats grew over three times faster than overall regional revenue in Europe and other international markets. The company is exporting its lower-funnel playbook and expanding partnerships with resellers to broaden its advertiser base outside the U.S. and Canada. Emerging vertical growth: Management cited financial services, technology, and entertainment as sectors showing accelerating ad spend. Pinterest's appeal to users during key life moments, such as starting a family or major purchases, is attracting advertisers from sectors beyond retail. Operational efficiency through AI: Internally, over 25% of Pinterest's code is now generated using AI tools, which management says has improved engineering velocity and allowed for more targeted R&D investment. Productivity enhancements are being applied across product development and sales operations. Pinterest's outlook for the next quarter and full year centers on scaling AI-driven product innovation, expanding international monetization, and balancing investment with disciplined cost management. Adoption of Performance+ and measurement tools: Management expects broader uptake of the Performance+ suite and privacy-centric measurement solutions to drive increased advertiser spend and improve conversion tracking. The company believes that making campaign creation more efficient and enhancing reporting capabilities will help close the gap between user engagement growth and revenue realization. International revenue expansion: Pinterest plans to further extend its lower-funnel advertising tools and shopping features to new global markets, with a particular focus on regions where user growth is outpacing monetization. Management sees significant runway as international users represent roughly 80% of the base but a much smaller share of revenue. Investments in AI and R&D: The company will continue prioritizing investments in AI-powered personalization, visual search, and product velocity. While these investments are expected to support long-term growth, management noted they will result in higher near-term R&D and marketing expenses, which could moderate the pace of margin expansion. In the quarters ahead, analysts will monitor (1) adoption rates of the Performance+ suite among mid-market and global advertisers, (2) progress in monetizing the growing international user base, and (3) evidence that AI-driven product enhancements are sustaining engagement and conversion gains. It will also be crucial to track whether investments in R&D and marketing support profitable growth as the company scales. Pinterest currently trades at a forward EV/EBITDA ratio of 18.8×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
22-05-2025
- Business
- Yahoo
This Social Media Stock Just Beat Expectations in a Tough Quarter. Is Now the Right Time to Buy?
Pinterest defied Q1 advertising slowdown trends with record user growth. The untapped potential in Pinterest's global user base hints at a revenue opportunity that investors might be overlooking. Pinterest's AI-powered ad technology leverages unique user intent to deliver superior results, outperforming traditional campaigns. 10 stocks we like better than Pinterest › Pinterest (NYSE: PINS) stock surged 12.39% on May 12, a few days after the company delivered a surprisingly strong Q1 earnings report. The numbers were hard to ignore. Revenue topped estimates. User growth increased to an all-time high. Margins moved in the right direction. And Pinterest pulled this off in what's typically the slowest stretch of the year for digital advertising. Still, it's hardly a liftoff. The stock's up on the year, but it's well below its pandemic-era peak. Even after a stronger Q1, Pinterest is trading more than 20% below where it was this time last year. It looks underpriced, but is Pinterest a buy? Let's pin down the details and see. First quarters tend to be sleepy for ad-driven businesses. Post-holiday lull. Budget resets. Not much to see. But Pinterest bucked the trend. Revenue rose 16% year over year to $855 million. Monthly active users (MAUs) across the globe climbed to a record high of 570 million, a 10% increase. While it missed slightly on earnings per share (EPS), costs grew more slowly than revenue. Most notably, Pinterest turned a profit, posting $9 million in generally accepted accounting principles (GAAP) net income after a loss in the same quarter last year. In short; Pinterest didn't just grow. It got more efficient. And it's turning that scale into profit. Pinterest's improving finances owe much to its global business kicking into gear. In fact, the standout in Q1 wasn't the U.S. or Europe, but its "Rest of World" segment, the fastest-growing yet most undermonetized part of its business. Let's look at the spread. Region Monthly Average Users (Millions) Average Revenue Per User (USD) Revenue Growth YoY U.S. & Canada 102 6.54 +12% Europe 148 1.00 +24% Rest of World 320 0.14 +49% Data source: Pinterest Q1 2025 earnings report. Monthly average users (MAUs) in "Rest of World" climbed 14% to 320 million, and average revenue per user (ARPU) jumped 29%. That pushed revenue in the segment up 49%, far outpacing other regions. It's still just 5.3% of Pinterest's revenue, but the trajectory is steep. If Pinterest can close even part of the monetization gap abroad, this region could become a major driver of future growth. To put it in perspective: If "Rest of World" reached just half of Europe's ARPU, it would have brought in $13 million more than Europe this quarter. At $2.08, it would have eclipsed revenue from the U.S. and Canada. Pinterest's ARPU surge last quarter didn't happen by accident. It's the result of a platform designed around user intent -- and an ad system getting smarter about how to monetize it. CEO Bill Ready emphasized this on the Q1 earnings call by calling Pinterest a "shopping destination." Not because users come looking for something to buy, but because they come looking for ideas. This makes Pinterest a goldmine for advertisers because user intent is baked into the platform. Performance+ -- Pinterest's new AI-powered ad suite -- is built to monetize that intent. It's turning user behavior into better results, beating traditional campaigns in 80% of A/B tests. In other words, advertisers are getting more conversions with less friction, making it a powerful tool for unlocking under-monetized users. Adoption is still early, but in Q1, shopping ad revenue in Europe and "Rest of World" grew more than three times faster than overall regional revenue. For a platform with hundreds of millions of under-monetized users, that's not just encouraging -- it's a glimpse at how scalable monetization, powered by AI, could accelerate Pinterest's growth trajectory. With a trailing P/E around 12, Pinterest is trading at a discount to most of its social media peers (Meta's P/E is about 25). And that's despite record engagement, improving margins, and a growing pool of monetizable users. More importantly, the company is trimming costs and turning a profit. It's leaner, more focused, and has plenty of room left to run. Pinterest has plenty of momentum, but real risks remain. Privacy regulation is tightening, especially in Europe where new data rules may limit the effectiveness of ad targeting. Advertising budgets may also shrink if economic conditions soften or interest rates stay high. And while Performance+ is promising, it's still new and hasn't been fully tested. None of this derails Pinterest's strong first quarter, but it does mean the company has to execute cleanly to stay on this trajectory. While it's not without risk, Pinterest's growth story is compelling. With a growing user base, improving monetization, and a valuation that leaves room to rerate, it looks like a long-term winner in the making. For investors with a multi-year view, Pinterest is worth buying today. Before you buy stock in Pinterest, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pinterest wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pinterest. The Motley Fool has a disclosure policy. This Social Media Stock Just Beat Expectations in a Tough Quarter. Is Now the Right Time to Buy? was originally published by The Motley Fool
