Pinterest shares jump 20% as AI advertisement tools drive forecasts
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Pinterest's shares rose 20% on Friday as it forecast first-quarter revenue above estimates, indicating that its AI-powered tools would spur ad spend on the image sharing platform. Pinterest has focused on direct response ads, designed to prompt specific actions like app downloads or website visits. Investments in AI tools such as its Performance+ suite for improving targeting of ads with automation are also helping Pinterest. CEO Bill Ready said advertisers that were using these tools required 50% fewer inputs to create a campaign now. "If you're a smaller ad platform, the less time and more automated you can make it for the advertisers, the easier it is to get them to try you out," Bernstein analyst Mark Shmulik said. "We think the progress Pinterest has shown is sustainable." The social media firm also posted record revenue in the fourth quarter as strength in advertising from retail, technology and financ...