Pinterest’s stock took a serious beating this week.
Shares tumbled 20% after the market closed. Why? The digital inspiration board we all know and love just couldn’t hit the numbers Wall Street wanted.
Buuuuut CEO Bill Ready had an interesting card to play during the earnings call.
The Bold ChatGPT Comparison
Ready threw out a comparison that turned heads. He claimed Pinterest actually sees more searches than ChatGPT.
According to the data Ready shared, ChatGPT handles about 75 billion searches every month.
But Pinterest? They’re processing 80 billion searches monthly. Plus, they’re generating 1.7 billion clicks.
“We’re one of the largest search destinations in the world,” Ready explained.
Here’s where it gets interesting. Ready pointed out that over half of Pinterest searches are commercial. People are looking to buy stuff. Meanwhile, only about 2% of ChatGPT searches have that shopping intent.
The Numbers Tell a Tough Story
Let’s break down what actually happened with Pinterest’s fourth-quarter performance:
| Metric | Pinterest’s Result | Wall Street Expected | Difference |
|---|---|---|---|
| Revenue | $1.32 billion | $1.33 billion | Missed |
| Earnings Per Share | $0.67 | $0.69 | Missed |
| Monthly Active Users | 619 million | 613 million | Beat |
Notice anything odd there?
Pinterest actually gained more users than expected. They grew 12% year-over-year. So why did the stock crash?
What Went Wrong?
Pinterest blamed two main culprits for their earnings stumble.
First, big advertisers started pulling back. This hit especially hard in Europe. When your business model depends on ad dollars, that’s a problem.
Second, a furniture tariff kicked in during October. This messed up Pinterest’s home category. Think about it – Pinterest is where people go to dream about home renovations and furniture. So, a tariff that makes furniture more expensive is definitely bad news.
The company warned things might get worse before they get better. Their forecast for the first quarter of 2026 is between $951 million and $971 million in sales. Wall Street wanted $980 million.
The Pinterest Puzzle
Here’s Pinterest’s ongoing headache. They’ve got tons of people using their platform. 619 million monthly users is nothing to sneeze at.
But turning those eyeballs into dollars has been their struggle.
Why is that?
Well, think about how you use Pinterest. You’re probably planning a dream vacation. Or creating a mood board for your future wedding. Or saving recipes you’ll definitely make someday (we all do it).
You’re dreaming, not buying. At least not right away.
How People Actually Use Pinterest
- Wedding planning – months or years before the big day
- Home renovation ideas – saving for “someday”
- Recipe inspiration – building a collection
- Fashion mood boards – aspirational looks
- Travel bucket lists – future trip planning
See the pattern? Pinterest users are in the inspiration phase. Not the “shut up and take my money” phase.
The AI Shopping Revolution Looms
Now Pinterest faces a new challenge. AI chatbots are getting better at helping people shop.
Imagine asking ChatGPT: “Find me a good coffee maker under $100 with great reviews.” That’s direct buying intent. Clear as day.
When an advertiser sees that kind of specific request, their ears perk up. They know that person is ready to spend.
Pinterest’s Game Plan
So how’s Pinterest planning to compete? Ready highlighted a few key strategies:
Visual Search Technology
Pinterest has been investing heavily in visual search. You can snap a photo of a lamp you like and find similar products. That’s pretty cool.
Personalization
The platform uses AI to show you relevant products when you open the app. No typing required.
The Amazon Partnership
This one’s big. Pinterest teamed up with Amazon to make checkout easier. Fewer clicks between “I want that” and “I bought that.”
Ready made an interesting point about AI shopping. He doesn’t think people are ready to let an AI make purchases on their behalf yet. Would you trust a chatbot with your credit card to buy things without your approval?
Probably not.
But if that day comes, Ready says Pinterest will be ready. He claims solving automated purchasing would be “one of the easiest parts of the commercial journey.”
What This Means for Investors
Tbh, a 20% stock drop hurts.
Investors are worried about a few things:
- Slowing ad revenue – If big advertisers keep cutting budgets, that’s a problem
- The AI threat – Will ChatGPT and similar tools steal Pinterest’s lunch?
- Conversion challenges – Can Pinterest ever turn dreamers into buyers?
But there are bright spots too. User growth is solid. The platform isn’t dying – people still love using it.
The Bigger Picture
Pinterest finds itself at an interesting crossroads. They’ve built something millions of people use daily. They’ve got search volume that rivals the hottest AI tool on the planet.
Yet somehow, they can’t quite capture the advertising dollars they need to thrive.
Is it a problem with their pitch to advertisers? Maybe. Is it the nature of their platform? Possibly. Or is it just a rough patch that’ll smooth out?
Time will tell.
For now, Pinterest is doubling down on what they do best: visual discovery, personalization, and making it easier to go from inspiration to purchase.
The question is whether that’ll be enough in an AI-powered world where competitors are literally chatting with users about what to buy.
