"That question has become more pressing. During the company's third-quarter earnings announcement, it predicted a weaker holiday shopping season than expected, citing President Donald Trump's tariffs and their negative impact on the home furnishings category. As a result, Pinterest's fourth-quarter revenue is expected to come in between $1.31 billion and $1.34 billion, while analysts were estimating $1.34 billion, on average. The news sent the stock tumbling by more than 21% on Wednesday."
"Despite the near-term revenue concerns, Pinterest CEO Bill Ready pointed to ways the business could maximize its use of AI and LLMs (large language models), without dramatically increasing its costs. In addition to its own proprietary models that are already accounted for in its cost structure, Ready said the company tests leading off-the-shelf models against open-source options on a regular basis, and found the open-source models promising."
Pinterest uses AI across personalized recommendations, multimodal search, ad targeting, and product discovery through its AI-powered Pinterest Assistant. Investors asked about opportunities in agentic commerce as autonomous AI systems could affect growth and monetization. The company forecast a weaker holiday shopping season, blaming tariffs that hurt home furnishings, and guided fourth-quarter revenue to $1.31–$1.34 billion, below some analyst expectations, triggering a >21% stock drop. CEO Bill Ready said the company balances proprietary models with regular testing of off-the-shelf and open-source models and found open-source visual AI models promising for Pinterest use cases while keeping costs down.
Read at TechCrunch
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