Yahoo Finance Pinterest Surges Most Since 2020 on Tilt Toward Shopping, Gen Z
(Bloomberg) -- Pinterest Inc. gained the most in more than three years after the company reported first-quarter sales and user growth that surpassed Wall Street’s expectations, bolstered by a push into shopping and a focus on Gen Z users.
Most Read from Bloomberg
Jack Dorsey Leaves Bluesky Board, Calls X ‘Freedom Technology’
At $2 Million Per Minute, Treasuries Mint Cash Like Never Before
S&P 500 Extends Gains in Final Minutes of Trading: Markets Wrap
“We have really leaned into creating a more positive environment relative to the toxicity that Gen Z experiences on much of the rest of social media,” Chief Executive Officer Bill Ready said in an interview.
Shares were up as much as 23% to $40.98 Wednesday afternoon in New York, the biggest intraday increase since October 2020.
Revenue rose 23% to $740 million in the three months ended March 31, the company said Tuesday in a statement. Analysts had projected $700.3 million, on average. The company reported adjusted earnings per share of 20 cents. That beat the average forecast for 14 cents.
The pinboard-style search company now has 518 million global monthly users, up 12% from a year ago and crossing the half-billion mark for the first time. More than 40% of Pinterest users are in the demographic cohort known as Gen Z, generally born starting around 1997.
San Francisco-based Pinterest has been investing heavily in its digital advertising business, striking partnerships with Amazon.com Inc. and Alphabet Inc.’s Google to help fill inventory and offering more targeted, direct-response ads. Those can be more lucrative than other kinds of marketing because they push users to click on promotions or purchase items rather than just passively raising brand awareness.
Pinterest has also focused on shoppable content, making it easier for consumers to buy items they see on the pin boards. This shopping mindset distinguishes Pinterest from other social networking companies, Ready has said, since people often show up to the site actively seeking something to buy — not just to scroll through posts. Such modern “window shopping” has made Pinterest more attractive to young people, he said.
The company has seen a revenue boost from large retailers such as Urban Outfitters and Vuori, plus advertisers in Asia and other international markets that are looking to reach young US consumers.
Pinterest expects revenue of $835 million to $850 million in the current quarter, topping analysts’ estimates of $828 million.
Most Read from Bloomberg Businessweek
Chris Dixon’s Campaign to Overhaul Crypto’s Grifty Reputation
AI Is Helping Automate One of the World’s Most Gruesome Jobs
©2024 Bloomberg L.P.
