Pinterest posts jump as AI ads tools drive drive

Written by Gasbit Singh

(Reuters)-Pinterest (PINS) shares increased by 20 % on Friday, as you expect the revenues of the first quarter above, indicating that its AI’s same tools will stimulate advertising spending on the photo sharing platform.

Pinterest focused on direct response ads, designed to conduct specific procedures such as application downloads or web visits.

Investments in artificial intelligence tools such as their performance+ suite to improve ads targeting with automation also help Pinterest. Bill Ready CEO said advertisers who were using these tools required 50 % lower inputs to create a campaign now.

“If you are a smaller advertising platform, the less time and more automatically, you can make it for advertisers, the easier it is to make them try you.”

“We believe the progress shown by Pinterest is sustainable.”

The social media company has also recorded record revenues in the fourth quarter as a force in advertising from the sectors of retail, technology and financial services that compensate for the continuous weakness in spending on food marketing and drinks.

It raised at least 27 mediation companies whose target price is on Pinterest after the latest profit report.

The company is scheduled to add more than $ 4 billion in its market value if the gains are held. As of the last closure, the market rating was $ 22.70 billion.

Pinterest shares often interact violently after their profit reports. They decreased by 14 % after a quarter of the company’s weak holiday forecasts in November, but the stock rose by 21 % a day after it was reported about the results of the first quarter in April last year.

Revenue expectations in the first quarter of the company were from 837 million dollars to 852 million dollars higher than the average estimate of analysts of $ 832.8 million, according to the data collected by LSEG.

Also, the basic profit expectations were from 155 million dollars to 170 million dollars before analysts estimated.

In the fourth quarter, revenues were $ 1.15 billion shortly before estimates. The global active users were 553 million.

Pinterest is currently trading 17.88 times in its profit estimates for the next 12 months, compared to 27.37 times for Meta and Snap’s 25.40 times.

(Participated in Gasbit Singh reports in Bangaluru; edited by Leroy Liu)