Market Overview: Meta and Pinterest
In 2025, Meta Platforms (NASDAQ: META) gained over 10% amid volatile trading, while Pinterest (NYSE: PINS) fell by more than 10%. Both companies have adopted artificial intelligence (AI) strategies to enhance user engagement and marketing efficiency. Meta’s daily active users increased by 8%, and its ad impression count rose by 14%, contributing to accelerating revenue growth of 26% in the last quarter of 2025. In contrast, Pinterest’s revenue grew by 16% for the year, with a notable 30% rise in free cash flow.
Pinterest’s Growth Metrics
Pinterest reported a 17% revenue increase in Q3 2025, driven by significant growth in European monthly active users (8% increase) and average revenue per user (31% increase to $1.31). The company’s adoption of AI has led to improvements in its recommendation engine and shoppable features, with a forward price-to-earnings (P/E) ratio of approximately 13 for 2026, considerably lower than Meta’s 22.
Future Outlook
As both companies look to capitalize on AI, Pinterest is expected to better perform in 2026 due to undervaluation relative to its growth potential. Meta plans to reduce its metaverse spending by 30% to enhance profitability going forward. Overall, analysts predict continued revenue growth for both companies, contingent on economic conditions and advertising investments.
