Pinterest reported second-quarter revenue growth of 18%, topping its own forecast of 14% to 16%, yet the stock fell about 10% year-to-date as investors reacted to third-quarter guidance. The company projected third-quarter revenue growth of 13% to 15%, in line with analyst estimates, but its history of conservative guidance suggests it may again outperform. Second-quarter revenue was driven by a 16% increase in ad impressions and a 1% rise in ad prices, with U.S. and Canadian revenue up 18% to $800 million. Monthly active users grew 11% to 640 million, and adjusted earnings per share surged 30% to $0.43, beating the $0.36 consensus. The stock now trades at a forward price-to-earnings ratio below 10.5 based on 2027 estimates, which the author views as a bargain given the company's growth and AI-driven advertising improvements.
