Pinterest Surges 1.59% on Strong International Growth and AI Investments 360M in Daily Volume Ranked 280th in Market Activity

Pinterest (PINS) rose 1.59% on August 14, 2025, with a trading volume of $360 million, ranking 280th in market activity. The stock’s performance followed a mixed earnings report where revenue and adjusted EBITDA exceeded expectations, though share prices dipped after missing profit forecasts.

The company reported a 17% year-over-year revenue increase to $988 million, driven by strong international growth. Monthly active users (MAUs) rose 11% to 578 million, with the “rest of world” segment growing 14% to 329 million. Average revenue per user (ARPU) climbed 6% to $1.74 globally, though U.S. and Canadian ARPU at $7.29 lagged significantly behind international figures. Pinterest attributed international monetization progress to partnerships like Instacart, which now enables shoppable ads in food and beverage categories.

Under CEO Bill Ready, Pinterest has invested heavily in AI-driven platform upgrades, including multimodal large language models to enhance visual search and ad targeting. The company also highlighted a narrowing gap between U.S. and international ARPU, though challenges remain in emerging markets. Adjusted EBITDA surged 25% to $251 million, and third-quarter guidance of $1.033–$1.053 billion exceeded analyst expectations. Management noted resilience despite tariff-related spending cuts by some Asian e-commerce retailers.

Analysts remain divided on valuation metrics. The stock trades at a forward P/E of 19 based on 2025 estimates, with some viewing it as undervalued given its growth trajectory. However, concerns persist about short-term profitability, including a high accrual ratio and a one-time tax benefit that boosted earnings. The company’s 50% Gen Z user base and expanding AI capabilities suggest long-term potential, though near-term volatility could persist.

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