"Social media stocks Meta Platforms and Pinterest both experienced volatility in 2025, marked by strong sell-offs and rallies throughout the year. But it was Meta that outperformed, turning in an over 10% gain, while Pinterest fell more than 10% as of this writing. But a new year calls for a fresh look. So let's see which stock is set to outperform in 2026."
"Despite the stock's underperformance in 2025, Pinterest turned in robust results, growing its revenue by 16% through the first nine months of the year. Third-quarter results were strong, with revenue increasing by 17%, while adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) climbed by 24%, and free cash flow jumped by 30%. The company's growth has been led by international markets where it continues to nicely increase its user base and expand ARPU (average revenue per user)."
"At the same time, Pinterest has embraced artificial intelligence (AI) to transform its site from an online vision board to an AI-powered discovery and shoppable platform. It has developed a multimodal AI model to improve its recommendation engine and power visual search capabilities while also adding AI-powered features like an AI assistant that can go out and buy recommended products. It even has AI features that can act as a virtual stylist and even allow you to try on clothes virtually."
Meta Platforms outperformed in 2025 with just over a 10% gain, while Pinterest declined more than 10% amid volatility. Pinterest produced robust results with revenue up 16% through the first nine months, third-quarter revenue up 17%, adjusted EBITDA up 24%, and free cash flow up 30%. Growth has been concentrated in international markets: European MAUs rose 8% and European ARPU increased 31% to $1.31, while rest-of-world MAUs climbed 16% and ARPU rose 44% to $0.21. Pinterest is shifting into an AI-powered discovery and shoppable platform and improving advertiser tools like Performance+ with dynamic ROAS.
Read at The Motley Fool
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