Pinterest Inc

Pinterest has committed $4 billion to Amazon Web Services through 2031, expanding its AI infrastructure and cloud spending. The agreement, announced June 4, supports AI development, search and shopping improvements, and modernization of Pinterest's visual-discovery platform. Pinterest processes over 80 billion searches monthly and its Taste Graph draws on more than 16 billion boards. Second-quarter non-GAAP cost of revenue rose 25% to $245 million, driven by GPU capacity and tvScientific, while non-GAAP operating expenses increased 13% to $629 million. The company expects third-quarter non-GAAP cost of revenue to be roughly flat sequentially due to contractual benefits from the new infrastructure agreement.

Pinterest beat second-quarter estimates but warned of slower growth ahead, while Etsy also topped expectations and then cut 220 jobs, about 12% of its staff. Pinterest posted adjusted earnings of 43 cents a share versus the 36 cents analysts expected, with revenue of $1.18 billion against a $1.15 billion estimate, but guided third-quarter revenue to $1.19 billion to $1.21 billion, implying growth of just 13% to 15%, down from 18%. CEO Bill Ready said companies ignoring open-source AI models are wasting shareholder money, and CFO Julia Donnelly cited the non-repeating World Cup ad boost and European regulatory pressure on Asian retailers as reasons for the slowdown. Etsy reported revenue of $668.3 million, above the roughly $649 million expected, raised its full-year gross merchandise sales outlook to mid-single-digit growth, and announced a $2 billion buyback, but posted a $46.7 million net loss and a 0.4% drop in active buyers.

Snap shares fell 3% to $5.24 Monday midday after a federal appeals court ruling stripped the company's Section 230 immunity, opening the door to more than 3,000 consolidated lawsuits. The Ninth Circuit's August 10 decision rejected the legal shield that has historically protected social media platforms from liability over user-generated content, and the ruling sent Snap stock down as much as 12% overnight to $4.74 before buyers stepped in. The lawsuits, brought by states, municipalities, school districts and families, allege Snapchat was deliberately designed to maximize engagement among minors. The legal overhang overshadowed Snap's Q2 2026 revenue beat of $1.6 billion, up 18.9% year over year, and adjusted EBITDA of $249.62 million versus $41.27 million a year earlier. Peers also fell, with Meta Platforms down 3% to $573.9, Reddit down 3% to $173.45, and Pinterest down 4% to $23.2, while the Global X Social Media ETF slipped 1% to $46.11.

Pinterest reported second-quarter 2026 revenue of US$1,179.65 million but swung from net income to a US$46.67 million loss, and issued third-quarter revenue guidance of US$1,190 million to US$1,210 million. The company also appointed Renee Jewell, currently Controller at Airbnb and CFO of Airbnb Payments, as Chief Accounting Officer. The renewed loss alongside revenue growth highlights execution risk and may sharpen investor focus on cost discipline and monetization.

Spotify and Pinterest both reported second-quarter 2026 results that exceeded analyst expectations, yet their stocks declined. Spotify posted earnings per share of $3.0071 against a $2.796 consensus and revenue of $5.50 billion, with premium subscribers reaching 300 million for the first time. Pinterest delivered non-GAAP earnings per share of $0.43 on revenue of $1,179,654,000, growing 18.17% year over year, and global monthly active users hit 640 million. Despite the beats, Spotify slipped 6.53% over the past week and Pinterest gave back 4.22% the morning after the reports. Spotify guided third-quarter revenue to roughly EUR 5 billion with a gross margin of 32.9%, while Pinterest guided third-quarter revenue to $1,190 million to $1,210 million, representing 13% to 15% year-over-year growth and a deceleration from the second quarter.

U.S. stock futures were broadly higher on Wednesday as Shopify jumped 26% in premarket trading after reporting second-quarter revenue of $3.58 billion, topping analysts' expectations of $3.45 billion, while Advanced Micro Devices fell 8.8% after its revenue outlook disappointed investors. Shopify's adjusted earnings per share of $0.42 also beat estimates, and gross merchandise volume rose 32% from a year earlier with free cash flow climbing to $654 million. AMD's decline was compounded by SpaceX announcing it would build its computing infrastructure exclusively with Nvidia chips, underscoring the challenges AMD faces in winning major AI customers. Among other movers, Eli Lilly gained 5.7% after raising its full-year revenue guidance, GE HealthCare advanced 12.3% on a second-quarter beat, and Disney rose 4.7% after a strong profit beat and plans to repurchase $9 billion of shares in fiscal 2026. On the downside, Pinterest fell 9% on a slower third-quarter revenue outlook, Match Group declined 10.2% after forecasting another drop in paying users, and wireless carriers Verizon and AT&T each fell more than 2% after SpaceX outlined plans for a nationwide mobile service that could compete directly with them.

SpaceX shares fell 11% in premarket trading after the Elon Musk-led rocket company released its first quarterly report since going public in June, reporting capital expenditures of $18.37 billion, up 550% from a year ago, while second-quarter revenue of $7.81 billion topped estimates. Disney rose more than 3% despite mixed fiscal third-quarter results, with earnings per share beating expectations but revenue slightly missing, and its experiences business revenue up 10% annually. Arista Networks gained 12% after second-quarter adjusted earnings of $1.02 per share on revenue of $3.04 billion surpassed estimates, and third-quarter guidance also beat. AMD plunged 8.5% as second-quarter adjusted earnings of $1.66 per share on revenue of $11.54 billion and in-line third-quarter revenue guidance of $13 billion failed to impress investors. Eli Lilly jumped more than 6.5% after beating earnings and revenue estimates and raising its full-year 2026 revenue guidance, driven by surging demand for weight loss drug Zepbound and diabetes treatment Mounjaro. Circle Internet Group shares were up more than 5% after naming initial partners for its Arc blockchain and doubling the midpoint of its full-year other revenue guidance to $320 million. Wynn Resorts saw shares jump 5% after second-quarter adjusted earnings of $1.24 per share on revenue of $1.86 billion beat estimates. CVS Health shares were up over 2.5% after better-than-expected earnings and revenue and an increase in its 2026 adjusted earnings per share guidance to a range of $7.90 to $8.10. Kratos Defense & Security Solutions rose 10% after second-quarter revenue beat estimates in all segments. Pinterest slid nearly 9% as third-quarter revenue guidance of $1.19 billion to $1.21 billion, bracketing the consensus estimate of $1.2 billion, failed to impress despite second-quarter beats. DaVita fell over 5.5% even with better-than-expected second-quarter results, as full-year adjusted earnings guidance of $14.10 to $15.20 per share compared to a consensus of $14.88. Teradata slumped 13% after third-quarter earnings guidance of 55 to 59 cents per share excluding items trailed the consensus estimate of 62 cents. Booking Holdings advanced more than 7% after second-quarter gross bookings of $51 billion and adjusted earnings of $2.54 per share on revenue of $7.35 billion topped estimates. Uber Technologies fell 3% after third-quarter bookings guidance of $59.25 billion at the midpoint missed the consensus estimate of $59.33 billion. Carlyle Group rose more than $2 after earnings and revenue beat estimates and total assets under management reached $485 billion. Flutter Entertainment was off more than 5% after announcing CEO Peter Jackson would leave and be replaced by Dan Taylor on October 1, and lowering full-year revenue guidance.

Pinterest forecast slower revenue growth for the third quarter, signaling tough competition for digital advertising from bigger players including Meta's Instagram, and its shares fell 6% in extended trading. The image-sharing platform expects current-quarter revenue between $1.19 billion and $1.21 billion, representing 13% to 15% growth, compared with analysts' average estimate of $1.20 billion. That is slower than the 18% revenue growth in its second quarter, when it reported $1.18 billion in revenue, beating estimates of $1.15 billion. Global monthly active users rose 11% to 640 million, while average revenue per user rose 7% to $1.86. CEO Bill Ready said AI is at the heart of the company's momentum and is a clear accelerant for its business.

Pinterest CEO Bill Ready sold 32,057 shares of Class A Common Stock on July 20, 2026, in a non-discretionary transaction to satisfy income tax withholding obligations upon the vesting of restricted stock awards. The sale, valued at $731,000 based on a weighted average price of $22.81 per share, leaves Ready with approximately 1.9 million directly held shares worth $43.22 million at the market close. Pinterest, which operates a global visual discovery platform, has a market capitalization of $15 billion and reported trailing twelve-month revenue of $4.4 billion and net income of $334.3 million. The company's stock has declined 39% over the past year, despite reaching an all-time high of 631 million global monthly active users in the first quarter, as weaker-than-expected second-quarter revenue guidance weighed on investor sentiment.

New research from Jscrambler reveals that banking websites are transmitting sensitive customer information, including hashed identifiers, loan details, and financial intent signals, to third-party advertising, analytics, and personalization platforms without valid consent. The analysis of 14 financial institutions across Europe and the US found that tracking technologies fired without valid user consent on 9 sites, sending data to at least a dozen third parties including Google, Meta, TikTok, LinkedIn, Pinterest, Adobe, and Salesforce. Examples include a Spanish bank's mortgage process sending a customer's hashed email and phone number to TikTok's pixel endpoint, a Portuguese bank's account-opening flow sending email, name, age, and national tax number to Salesforce, and two other Portuguese institutions sharing full loan simulation details including a €27,000 loan with repayment terms to Google Analytics. The research also documented consent failures such as tags firing before cookie banner action, tags continuing after users rejected all, and consent choices not carrying into iframes or subdomains. Jscrambler recommends continuous runtime monitoring, enforcement controls to block unauthorized data exfiltration, and consent enforcement that extends across iframes and subdomains.

Meta Platforms and Pinterest both reported double-digit revenue growth in the first quarter of 2026, but Meta's 40.6% operating margin and AI-driven ad momentum make it the preferred long-term pick over Pinterest's GAAP net loss and cash drain. Meta posted earnings per share of $10.44 on $56.311 billion in revenue, up 33.08% year over year, while Pinterest crossed $1 billion in quarterly revenue for the first time with $1.008 billion, up 17.84%, yet recorded a GAAP net loss of $73.6 million. Analysts target $822.69 for Meta against a recent price of $644.12, and Polymarket traders assign a 92.5% probability that Meta beats second-quarter earnings. Pinterest completed $1.946 billion in Class A buybacks that drained cash from $969 million to $378 million, an aggressive move for a company still running at a loss. Meta's massive capex guidance of $125 to $145 billion for the year and its Reality Labs operating loss of $4.03 billion remain key risks, but its return on equity of 32.9% and forward price-to-earnings ratio near 21 times support the bullish case.

Pinterest reported strong user growth and engagement in the first quarter of fiscal 2026, yet its valuation continues to decline. Global monthly active users rose 11% to 631 million, marking the 11th consecutive quarter of record highs, while revenue climbed 18% to $1.008 billion. Despite these gains, ad pricing fell 5% year-over-year, and the stock has dropped 36% over the past year, trading at a forward price-to-earnings ratio of 13.30 compared to the industry average of 29.56. Concerns over weaker ad pricing, rising AI competition, and advertiser spending uncertainty are keeping the valuation depressed, even as the company signed a $4 billion cloud deal with Amazon Web Services through 2031 to advance its AI projects. Analysts remain divided, with half bullish and half neutral, while 49 hedge funds held shares at quarter-end, down from 53 in the prior quarter.

Pinterest director and co-founder Benjamin Silbermann sold 93,750 shares of Class A common stock for a total of $2.1 million on July 7 and 8, 2026, at a weighted average price of $22.43 per share. The sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted in February 2026 and involved the conversion of Class B shares into Class A shares. The shares were sold indirectly through SFTC, LLC, an entity owned by The Silbermann 2012 Irrevocable Trust. Following the transaction, Silbermann directly holds 13,996 shares, but maintains a significant economic interest through approximately 1.2 million direct derivative securities and 35.2 million indirect derivative securities. Pinterest shares have declined 37% over the past year, with the company valued at a $15.1 billion market capitalization as of the July 8 close.

Artisan Mid Cap Value Fund exited its position in Pinterest during the first quarter of 2026, citing macroeconomic headwinds and slower-than-expected progress on key priorities. The fund noted that Pinterest's recent results were impacted by tariffs, which weighed on advertising spending by large retail customers, and that the company is less diversified and more exposed to consumer-driven categories than larger social media peers. Pinterest was among the biggest decliners in the portfolio, dropping 30% or more during the quarter. The fund's Investor Class returned -4.93%, Advisor Class declined -4.90%, and Institutional Class fell -4.97%, all trailing the Russell Midcap Value Index's 3.68% gain. Pinterest shares lost 37.53% over the past 52 weeks and closed at $22.42 on July 7, 2026, with a market capitalization of $12.56 billion.

Pinterest shares have fallen 38% over the past year and 16.9% year-to-date, driven by mixed earnings results. Fourth-quarter revenue of 1.32 billion dollars and earnings per share of 67 cents missed analyst estimates, and first-quarter revenue guidance of 951 million to 971 million dollars also fell short. First-quarter results improved with revenue of 1 billion dollars and earnings per share of 27 cents, beating estimates. TimesSquare Capital exited its position after slower-than-expected fourth-quarter results and cautious guidance, citing advertising pullbacks by retailers impacted by tariffs.

RiverPark Large Growth Fund exited its position in Pinterest during the first quarter of 2026 after the stock declined 40%. The fund cited disappointing fourth-quarter 2025 earnings, where revenue of $1.32 billion missed the $1.33 billion consensus and adjusted EPS of $0.67 fell short of expectations. First-quarter 2026 revenue guidance of $951 million to $971 million came in well below the $980 million anticipated by analysts. CEO Bill Ready attributed the shortfall to an exogenous shock from tariffs that caused the company's largest retail advertiser cohort to meaningfully pull back on brand advertising budgets. The company also announced approximately 15% workforce reductions and organizational restructuring, further unsettling investors.

The United Arab Emirates has set a minimum age of 15 for social media use, becoming the first Arab nation to impose such a restriction. Under the regulation approved on Thursday, children under 15 will be prohibited from creating, using, or operating personal social media accounts, and will be barred from posting content, commenting, sharing material, or joining public groups. Teenagers aged 15 and 16 will be permitted to use social media platforms subject to enhanced safeguards, including age-appropriate content controls, restrictions on interactions with unknown users, screen-time management tools, and parental supervision features. The rules likely apply to all social media platforms operating in the UAE, including services offered by Meta Platforms, Alphabet's YouTube, Snap, Pinterest, and Reddit, and the UAE will give social media platforms up to 12 months to implement the new standards. The rule requires companies to implement robust age-verification systems, including digital identity checks and AI tech, and self-declared ages will no longer be accepted as valid verification.

Social networking stocks delivered a strong first quarter, with aggregate revenues beating analyst consensus estimates by 3.4% and next-quarter revenue guidance coming in 1.1% above expectations. Pinterest reported revenues of $1.01 billion, up 17.8% year on year and exceeding estimates by 4.4%, while Reddit posted revenues of $663.4 million, up 69.1% and beating by 8.8%. Meta reported revenues of $56.31 billion, up 33.1% and beating by 1.4%, Snap reported revenues of $1.53 billion, up 12.1% and in line with estimates, and Yelp reported revenues of $361.5 million, flat year on year and beating by 2.2%. Despite the beats, share prices of the five companies tracked have fallen an average of 8.6% since their earnings releases, with Meta down 14.1%, Snap down 21.6%, Yelp down 20.9%, and Pinterest down 1.3%, while Reddit bucked the trend with a 15.1% gain.

Shares of Snap, Pinterest, and Yelp declined in afternoon trading after the Federal Reserve held its benchmark rate at 3.5% to 3.75% and raised its median year-end rate estimate from 3.4% to 3.8%, signaling the easing cycle could reverse. The 2-year Treasury yield jumped 11 basis points to 4.161%, raising the discount rate on future cash flows for advertising-dependent platforms. Snap fell 5.6%, Pinterest fell 2.9%, and Yelp fell 4%. Snap's shares are very volatile and have had 27 moves greater than 5% over the last year, and the stock is down 41.5% since the beginning of the year, trading at $4.76 per share.