Pinterest shares sink as CEO draws comparison with ChatGPT

Pinterest

• Pinterest reports Q4 revenue and earnings below expectations
• Monthly active users rose 12% to 619 million
• Shares fell 20% after weak outlook and ad spending concerns

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Following a softer-than-expected fourth-quarter earnings report, Pinterest chief executive Bill Ready attempted to put a positive spin on the company’s position by drawing a comparison with ChatGPT.

Speaking after the results, Ready argued that Pinterest should be seen as a major search destination in its own right. Citing third-party data, he said ChatGPT handles around 75 billion searches per month, compared with roughly 80 billion searches on Pinterest, which generate about 1.7 billion monthly clicks.

“That makes us one of the largest search destinations in the world,” Ready said, adding that more than half of Pinterest searches are commercial in nature. By contrast, he claimed only around 2% of ChatGPT searches have commercial intent.

The comments came as Pinterest reported a miss on both revenue and earnings. The company posted fourth-quarter revenue of $1.32 billion, slightly below Wall Street expectations of $1.33 billion, while earnings per share came in at 67 cents, compared with forecasts of 69 cents. Its outlook for the first quarter of 2026 also disappointed, with projected revenue of $951 million to $971 million, below the $980 million analysts had expected.

Pinterest blamed the weaker performance on reduced spending from large advertisers, particularly in Europe, as well as disruption in its home category following a new furniture tariff introduced in October. The company warned that these pressures could intensify in the current quarter.

The miss was notable given Pinterest’s stronger-than-expected user growth. Monthly active users rose 12% year over year to 619 million, comfortably ahead of the 613 million Wall Street had pencilled in. Even so, the market reaction was harsh, with shares falling 20% in after-hours trading.

The results highlight a familiar problem for Pinterest. While usage remains high, the platform has long struggled to convert “planning and inspiration” behaviour into consistent advertising revenue. That tension may grow sharper as advertisers explore AI-driven platforms where purchase intent can be more explicit, such as chatbot queries for product recommendations.

Asked how Pinterest plans to compete in an increasingly AI-shaped shopping landscape, Ready pointed to the company’s strengths in visual search, discovery and personalisation. He argued that these features surface relevant products as soon as users open the app, without requiring typed prompts.

Ready also referenced Pinterest’s partnership with Amazon, which has simplified checkout flows for users. While he suggested consumers are not yet comfortable letting AI complete purchases on their behalf, he said Pinterest would be well positioned if and when that shift occurs.

“That’ll actually be one of the easiest parts of the commercial journey to solve,” he said.