S&P 500 Futures Rise in Premarket Trading; Penumbra, Pinterest Lag
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2024
0mins
Should l Buy PINS?
Source: Barron's
Market Performance: Talen Energy Corp. and Vistra Corp. saw significant pre-market gains of 16.4% and 12.3%, respectively, while Penumbra Inc. and Pinterest Inc. experienced declines of 18.6% and 11.1%. S&P 500 futures rose by 0.95%, indicating a positive outlook for the U.S. stock market opening.
Global Market Trends: Asian stocks showed upward movement with Japan's NIKKEI 225 Index up 1.49% and China's Shanghai Composite Index rising 2.06%. European markets also reflected gains, with the STOXX Europe 600 Index climbing 0.85% and the FTSE 100 Index increasing by 1.25%.
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Analyst Views on PINS
Wall Street analysts forecast PINS stock price to rise
17 Analyst Rating
14 Buy
3 Hold
0 Sell
Strong Buy
Current: 18.270
Low
24.90
Averages
35.46
High
44.00
Current: 18.270
Low
24.90
Averages
35.46
High
44.00
About PINS
Pinterest, Inc. (Pinterest) offers visual search and discovery platform. The Company’s primary service, Pinterest, can be accessed through its mobile application or the Web. People use Pinterest to find ideas. As they browse Pinterest content, Pins, they fine-tune their tastes and find the idea. Users interact with the platform in multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from brands. It has approximately 553 million monthly active users across the world. Content on Pinterest comes from a variety of sources, including retailers, brands, creators, publishers and users. It acquires that content via a range of methods, including product catalog uploads, direct publishing, and user curation. Content formats include images that allow the user to click into an idea to learn more, videos that provide the steps of an idea, and products that brands and merchants upload from catalogs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pinterest's User Growth and Advertising Potential
- User Growth Momentum: Pinterest's monthly active users reached 619 million in Q4, marking a 12% year-over-year increase and setting an all-time high, indicating sustained user base expansion despite challenges from declining ad spending.
- Revenue and Profitability: In 2025, Pinterest's revenue grew 16% year-over-year to $4.2 billion, while adjusted net income rose 22% to $1.1 billion, demonstrating resilience in the face of adversity, even though results fell short of expectations.
- Advertising Revenue Potential: Pinterest's average revenue per user (ARPU) stood at $7.21, with a striking $30.84 in the U.S. and Canada, highlighting significant growth opportunities in international markets, particularly in Europe and beyond.
- Market Strategy Adjustment: In response to tariff impacts, Pinterest is shifting focus to small and mid-sized advertisers while implementing AI tools to enhance user engagement and ad deployment efficiency, which is expected to aid in the recovery of its ad business and support long-term growth.
See More
Pinterest Stock Decline Yet Optimistic Outlook
- Stock Decline: Pinterest's stock has fallen 30% this year and 40% over the past 12 months, primarily due to tariff impacts that led large retailers to cut advertising spending, adversely affecting the company's revenue.
- User Ecosystem Growth: Despite challenges, Pinterest ended Q4 with 619 million monthly active users, a 12% year-over-year increase and an all-time high, enhancing the platform's network effect, which boosts ad sales and user engagement.
- Revenue Potential Improvement: In 2025, Pinterest's revenue increased 16% year-over-year to $4.2 billion, while adjusted net income rose 22% to $1.1 billion, indicating the company's potential for improving average revenue per user (ARPU), especially in the North American market.
- International Market Opportunity: Pinterest's ARPU in North America is $30.84, while in Europe and the rest of the world it is $5.12 and $0.83, respectively; management plans to export successful advertising strategies to international markets to enhance overall revenue and market share.
See More
Analysis of Pinterest's 30% Stock Decline
- Declining Ad Demand: Pinterest's revenue suffered significantly last year due to tariffs, particularly as large retailers cut marketing spending to protect margins, resulting in a 30% stock decline this year and a total drop of 40% over the past 12 months.
- Strong User Growth: Despite challenges, Pinterest ended Q4 with 619 million monthly active users, a 12% year-over-year increase and an all-time high, indicating the platform's growing appeal and user engagement.
- Revenue Potential Improvement: Pinterest's 2025 revenue increased 16% year-over-year to $4.2 billion, with adjusted net income rising 22% to $1.1 billion; while ARPU in North America was $30.84, there remains significant growth potential in Europe and other regions where ARPU is increasing rapidly.
- Optimistic Market Outlook: As market conditions evolve, Pinterest's ad business is expected to rebound, with management targeting smaller and mid-sized advertisers while implementing AI tools to enhance platform engagement, which is anticipated to drive long-term growth.
See More
Shopify and AppLovin's Market Value Outlook Over Five Years
- Shopify's Market Potential: Currently valued at $172 billion, Shopify must increase by 110% to reach $361 billion in five years, implying an annual return of about 16%, which would significantly enhance shareholder value and reflect its strong growth potential in the e-commerce sector.
- AI-Driven Innovations: Shopify's collaboration with Google on the Universal Commerce Protocol has led to a 15-fold surge in AI search orders, while its AI assistant, Sidekick, generated 4,000 applications and created 29,000 automations in just three weeks, showcasing rapid innovation in AI capabilities.
- AppLovin's Advertising Edge: AppLovin, focusing on ad tech, reported a 70% increase in advertising revenue to $5.4 billion and a 116% rise in net income to $3.4 billion in 2025, indicating strong performance and profitability in the advertising market.
- Future Growth Expectations: With Wall Street projecting a 44% annual earnings growth for AppLovin over the next five years, even at a conservative 30% growth rate, its market value could reach $365 billion, highlighting its competitive advantage and market appeal in the ad tech sector.
See More
Shopify and AppLovin Could Surpass Palantir's Market Value
- Shopify Financial Growth: In 2025, Shopify's sales surged by 30% to $11.5 billion, while operating income rose by 37% to $1.5 billion, demonstrating strong performance in market share expansion and solidifying its leadership in the e-commerce sector.
- AI Feature Enhancement: Shopify's collaboration with Google on the Universal Commerce Protocol has led to a 15-fold increase in AI search orders, and its AI assistant, Sidekick, generated approximately 4,000 applications and created over 29,000 automations in just three weeks, showcasing its potential in enhancing operational efficiency and customer experience.
- AppLovin Advertising Revenue: In 2025, AppLovin's advertising revenue increased by 70% to $5.4 billion, with net income rising by 116% to $3.4 billion, indicating robust growth and competitive strength in the ad tech sector.
- Market Expectations: Analysts project annual earnings growth rates of 28% for Shopify and 44% for AppLovin, potentially driving their market values to $362 billion and $365 billion respectively within the next five years, highlighting their significant potential in an AI-driven market.
See More
UK Regulators Urge Stricter Child Safety Measures on Social Media
- Regulatory Call to Action: UK regulators Ofcom and the Information Commissioner's Office have written to social media platforms like YouTube and TikTok, demanding reports on child protection measures by April 30, highlighting that current self-declaration age verification methods are ineffective and fail to protect children adequately.
- Legislative Developments: Although UK lawmakers rejected a proposal for a blanket ban on social media for users under 16, the government has launched a consultation to gather opinions from parents and youth on social media use, indicating a growing concern for online child safety.
- International Trends: Following Australia's implementation of a comprehensive ban, several European countries, including Spain, France, and Denmark, are considering similar measures, reflecting a tightening global regulatory environment that could impact the operational strategies of tech companies.
- Technological Responses: Companies like Meta and TikTok are implementing AI and facial age estimation technologies to enhance age verification effectiveness, with Meta advocating for centralized age verification at the app store level to improve safety for teenage users.
See More
Pinterest's User Growth and Advertising Potential
- User Growth Momentum: Pinterest's monthly active users reached 619 million in Q4, marking a 12% year-over-year increase and setting an all-time high, indicating sustained user base expansion despite challenges from declining ad spending.
- Revenue and Profitability: In 2025, Pinterest's revenue grew 16% year-over-year to $4.2 billion, while adjusted net income rose 22% to $1.1 billion, demonstrating resilience in the face of adversity, even though results fell short of expectations.
- Advertising Revenue Potential: Pinterest's average revenue per user (ARPU) stood at $7.21, with a striking $30.84 in the U.S. and Canada, highlighting significant growth opportunities in international markets, particularly in Europe and beyond.
- Market Strategy Adjustment: In response to tariff impacts, Pinterest is shifting focus to small and mid-sized advertisers while implementing AI tools to enhance user engagement and ad deployment efficiency, which is expected to aid in the recovery of its ad business and support long-term growth.
See More
Pinterest Stock Decline Yet Optimistic Outlook
- Stock Decline: Pinterest's stock has fallen 30% this year and 40% over the past 12 months, primarily due to tariff impacts that led large retailers to cut advertising spending, adversely affecting the company's revenue.
- User Ecosystem Growth: Despite challenges, Pinterest ended Q4 with 619 million monthly active users, a 12% year-over-year increase and an all-time high, enhancing the platform's network effect, which boosts ad sales and user engagement.
- Revenue Potential Improvement: In 2025, Pinterest's revenue increased 16% year-over-year to $4.2 billion, while adjusted net income rose 22% to $1.1 billion, indicating the company's potential for improving average revenue per user (ARPU), especially in the North American market.
- International Market Opportunity: Pinterest's ARPU in North America is $30.84, while in Europe and the rest of the world it is $5.12 and $0.83, respectively; management plans to export successful advertising strategies to international markets to enhance overall revenue and market share.
See More
Analysis of Pinterest's 30% Stock Decline
- Declining Ad Demand: Pinterest's revenue suffered significantly last year due to tariffs, particularly as large retailers cut marketing spending to protect margins, resulting in a 30% stock decline this year and a total drop of 40% over the past 12 months.
- Strong User Growth: Despite challenges, Pinterest ended Q4 with 619 million monthly active users, a 12% year-over-year increase and an all-time high, indicating the platform's growing appeal and user engagement.
- Revenue Potential Improvement: Pinterest's 2025 revenue increased 16% year-over-year to $4.2 billion, with adjusted net income rising 22% to $1.1 billion; while ARPU in North America was $30.84, there remains significant growth potential in Europe and other regions where ARPU is increasing rapidly.
- Optimistic Market Outlook: As market conditions evolve, Pinterest's ad business is expected to rebound, with management targeting smaller and mid-sized advertisers while implementing AI tools to enhance platform engagement, which is anticipated to drive long-term growth.
See More
Shopify and AppLovin's Market Value Outlook Over Five Years
- Shopify's Market Potential: Currently valued at $172 billion, Shopify must increase by 110% to reach $361 billion in five years, implying an annual return of about 16%, which would significantly enhance shareholder value and reflect its strong growth potential in the e-commerce sector.
- AI-Driven Innovations: Shopify's collaboration with Google on the Universal Commerce Protocol has led to a 15-fold surge in AI search orders, while its AI assistant, Sidekick, generated 4,000 applications and created 29,000 automations in just three weeks, showcasing rapid innovation in AI capabilities.
- AppLovin's Advertising Edge: AppLovin, focusing on ad tech, reported a 70% increase in advertising revenue to $5.4 billion and a 116% rise in net income to $3.4 billion in 2025, indicating strong performance and profitability in the advertising market.
- Future Growth Expectations: With Wall Street projecting a 44% annual earnings growth for AppLovin over the next five years, even at a conservative 30% growth rate, its market value could reach $365 billion, highlighting its competitive advantage and market appeal in the ad tech sector.
See More
Shopify and AppLovin Could Surpass Palantir's Market Value
- Shopify Financial Growth: In 2025, Shopify's sales surged by 30% to $11.5 billion, while operating income rose by 37% to $1.5 billion, demonstrating strong performance in market share expansion and solidifying its leadership in the e-commerce sector.
- AI Feature Enhancement: Shopify's collaboration with Google on the Universal Commerce Protocol has led to a 15-fold increase in AI search orders, and its AI assistant, Sidekick, generated approximately 4,000 applications and created over 29,000 automations in just three weeks, showcasing its potential in enhancing operational efficiency and customer experience.
- AppLovin Advertising Revenue: In 2025, AppLovin's advertising revenue increased by 70% to $5.4 billion, with net income rising by 116% to $3.4 billion, indicating robust growth and competitive strength in the ad tech sector.
- Market Expectations: Analysts project annual earnings growth rates of 28% for Shopify and 44% for AppLovin, potentially driving their market values to $362 billion and $365 billion respectively within the next five years, highlighting their significant potential in an AI-driven market.
See More
UK Regulators Urge Stricter Child Safety Measures on Social Media
- Regulatory Call to Action: UK regulators Ofcom and the Information Commissioner's Office have written to social media platforms like YouTube and TikTok, demanding reports on child protection measures by April 30, highlighting that current self-declaration age verification methods are ineffective and fail to protect children adequately.
- Legislative Developments: Although UK lawmakers rejected a proposal for a blanket ban on social media for users under 16, the government has launched a consultation to gather opinions from parents and youth on social media use, indicating a growing concern for online child safety.
- International Trends: Following Australia's implementation of a comprehensive ban, several European countries, including Spain, France, and Denmark, are considering similar measures, reflecting a tightening global regulatory environment that could impact the operational strategies of tech companies.
- Technological Responses: Companies like Meta and TikTok are implementing AI and facial age estimation technologies to enhance age verification effectiveness, with Meta advocating for centralized age verification at the app store level to improve safety for teenage users.
See More
