Pinterest’s stock jumps 3% on accelerated revenue growth forecast

Last Updated: Sept. 20, 2023 at 8:31 a.m. ET First Published: Sept. 19, 2023 at 2:39 p.m. ET

By

Jon Swartz

Pinterest’s sales grew less than 9% last year, and analysts are modeling 8% growth this year.
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PINS

CRM

ADBE

EBAY

SPX

Pinterest Inc.’s stock jumped 3% on Tuesday after executives forecast accelerated revenue growth following a slowdown dating to 2022.

Speaking at Pinterest’s PINS, +1.70% first investor day, executives said they expect a compound annual growth rate over the next three to five years in the mid- to high teens, compared with?guidance?in the high single digits for the third quarter. Pinterest’s sales grew less than 9% last year, and analysts are modeling 8% growth this year.

To get there, Pinterest rolled out new ad tools at its investor day, including integrations for Salesforce Inc.’s CRM, +1.02% Commerce Cloud and Adobe Inc.’s ADBE, +2.25% Commerce native applications. Pinterest also discussed its ongoing AI development.

Pinterest later named Scott Schenkel, the former chief financial officer and interim chief executive of eBay Inc. EBAY, +1.01%, to its board of directors.

“We believe innovation has accelerated at Pinterest over the past nine months,” Roth MKM analyst Rohit Kulkarni said in a note before the conference. “Pinterest has launched new ad formats, shopping tools, and advertiser tools as the company seems focused on building a full-funnel advertising solution.”

Pinterest’s stock is up 8% in 2023, while the broader S&P 500 index SPX, +0.81% has risen 16% this year,

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Jon Swartz

Jon Swartz is a senior reporter for MarketWatch in San Francisco, covering many of the biggest players in tech, including Netflix, Facebook and Google. Jon has covered technology for more than 20 years, and previously worked for Barron's and USA Today. Follow him on Twitter @jswartz.