Pinterest claims more searches than ChatGPT despite disappointing earnings.
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Pinterest CEO Compares Search Volume to ChatGPT Amid Earnings Shortfall
In a recent announcement following disappointing fourth-quarter earnings, Pinterest’s CEO Bill Ready sought to redirect attention by comparing the platform’s search capabilities to those of the trending AI chatbot, ChatGPT. The move aimed to spotlight Pinterest’s potential as a unique search engine, especially in the context of growing competition from AI-driven technologies.
Highlighting Search Volume
Ready emphasized that Pinterest outperforms ChatGPT in terms of search volume, claiming that the platform garners 80 billion searches each month compared to ChatGPT’s 75 billion. Furthermore, Pinterest boasts 1.7 billion monthly clicks, reinforcing its position as a significant player in the search market. “That makes us one of the largest search destinations in the world,” Ready noted, adding that over half of Pinterest searches are commercial in nature—quite a stark contrast to the roughly 2% of ChatGPT searches that are commercial.
Earnings Report Overview
Despite the positive spin on search volume, Pinterest’s recent earnings report was lackluster. The company recorded revenue of $1.32 billion, falling short of the anticipated $1.33 billion. Earnings per share also dipped below expectations, at 67 cents compared to the projected 69 cents. Looking ahead, Pinterest forecasted first-quarter 2026 sales between $951 million and $971 million, which undercut market predictions of $980 million.
This shortfall was attributed to several factors, including larger advertisers reducing spending, particularly in Europe, and a new furniture tariff initiated in October, which adversely affected the home goods category. Pinterest has cautioned that these trends could worsen in the upcoming quarter.
User Growth Amidst Challenges
Interestingly, Pinterest’s user growth remains a silver lining, with monthly active users rising 12% year-over-year to 619 million, slightly surpassing Wall Street’s forecast of 613 million. However, the company saw a drastic 20% drop in shares during after-hours trading following the earnings announcement. This volatility reflects the difficulties Pinterest faces in converting its high user engagement into revenue.
The Advertising Dilemma
Pinterest has historically struggled to turn its user engagement into advertising dollars. Many of its users engage with the platform for inspiration rather than intent to purchase, complicating the monetization process. This challenge is projected to intensify in the age of AI, where advertisers may prefer platforms that can more clearly indicate buying intent, such as chatbots that provide tailored product recommendations.
When questioned about how Pinterest plans to compete in an AI-driven market, Ready highlighted the company’s visual search, discovery, and personalization capabilities. He stated that these features would help guide users to relevant products with minimal effort, saying, “We’re helping them complete those commercial journeys without having to type in a single prompt.”
Future Innovations and Partnerships
Ready also pointed out the advantages of Pinterest’s partnership with Amazon, which simplifies the checkout process for users. While he acknowledged that consumers have not yet expressed a readiness to let AI make purchases on their behalf, he asserted that Pinterest is prepared for that eventuality. “That’ll actually be one of the easiest parts of the commercial journey to solve,” he claimed.
This proactive stance reflects Pinterest’s broader strategy to enhance user experience through innovative features while also navigating the complexities of market demands. As AI continues to reshape consumer behavior and advertising strategies, the company is positioning itself to remain a relevant player by leveraging visual searches and streamlined shopping experiences.
Conclusion
As Pinterest grapples with a challenging financial landscape and increasing competition, its leadership is taking steps to highlight the platform’s strengths. CEO Bill Ready’s comparison to ChatGPT underscores Pinterest’s potential as a vital search engine, albeit in a different context. Moving forward, the company will need to effectively harness its user growth and enhance its advertising potential to overcome challenges and thrive in an increasingly AI-focused market. Whether Pinterest can adapt and innovate sufficiently to seize opportunities for future growth remains to be seen.
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