Pinterest reported strong user growth and engagement in the first quarter of fiscal 2026, yet its valuation continues to decline. Global monthly active users rose 11% to 631 million, marking the 11th consecutive quarter of record highs, while revenue climbed 18% to $1.008 billion. Despite these gains, ad pricing fell 5% year-over-year, and the stock has dropped 36% over the past year, trading at a forward price-to-earnings ratio of 13.30 compared to the industry average of 29.56. Concerns over weaker ad pricing, rising AI competition, and advertiser spending uncertainty are keeping the valuation depressed, even as the company signed a $4 billion cloud deal with Amazon Web Services through 2031 to advance its AI projects. Analysts remain divided, with half bullish and half neutral, while 49 hedge funds held shares at quarter-end, down from 53 in the prior quarter.
Pinterest IncAd pricing fell 5% year-over-year, pressuring revenue growth and margins.
Spotify Technology SA
Amazon.com IncPinterest signed a $4 billion cloud deal with Amazon Web Services through 2031.
Meta Platforms Inc.