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

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,
+3.19%
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,
+0.33%
Commerce Cloud and Adobe Inc.’s
ADBE,
+1.74%
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,
-0.66%,
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,
-0.22%
has risen 16% this year,

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