What Happened?
Shares of social commerce platform Pinterest (NYSE: PINS) jumped 3.3% in the afternoon session after the stock extended its positive momentum as CEO Bill Ready revealed that Gen Z now represents over 50% of its user base, making it the platform's largest and fastest-growing demographic.
Speaking at a Goldman Sachs technology conference, Ready attributed this "significant resurgence" to the company's focus on AI-powered visual search and shopping tools. This strategy has helped the platform achieve eight consecutive quarters of user growth. In the second quarter, Pinterest reported a 17% year-over-year jump in revenue to $998 million, with monthly active users climbing 11% to 578 million. The platform's success in attracting and retaining the valuable Gen Z audience signals strong momentum for future growth.
After the initial pop the shares cooled down to $36.11, up 3.1% from previous close.
Is now the time to buy Pinterest? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Pinterest’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 26% on the news that the company reported fourth-quarter results, which beat analysts' revenue and EBITDA expectations. Its quarterly guidance for both metrics outperformed Wall Street's estimates. The growth was driven by a record-high 553 million global monthly active users (MAUs), up 11%, and a 6% increase in global average revenue per user (ARPU). Overall, we think this was a good quarter with some key metrics above expectations. Following the impressive performance, Bernstein upgraded the stock from Hold to Buy, adding, "It's possible that this quarter was a one-off, though we see enough evidence in execution to believe the pace of progress is sustainable.".
Pinterest is up 18.1% since the beginning of the year, but at $36.11 per share, it is still trading 9.7% below its 52-week high of $40 from February 2025. Investors who bought $1,000 worth of Pinterest’s shares 5 years ago would now be looking at an investment worth $959.98.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.