Old-School Social Media in the Millennial Era Flooded by Gen-Z, Instantly Profitable

Jakarta, CNBC Indonesia –Pinterest, a social media that resembles a digital ‘wallet’ in the millennial era, was suddenly flooded with new users. The stock price of the company that was founded in December 2009 immediately skyrocketed 19 percent.

Reuters reported that Pinterest posted first-quarter revenue above market projections. The trigger was the adoption of artificial intelligence technology in digital advertising features that caused advertising spending on Pinterest to skyrocket. Previously, Pinterest also announced a record for monthly active users and revenue in the fourth quarter.

Digital advertising spending on Pinterest was boosted by the Performance+ feature equipped with AI. This feature allows advertisers to target consumers accurately and automatically.

“Our strategy is paying off. Users are visiting Pinterest more often, the platform has never been busier,” said Pinterest CEO Bill Ready.

Advertisers are also attracted by the growth of users from Gen Z and shopping content on Pinterest. This development is the result of Pinterest’s collaboration with Google and Amazon.

“Pinterest has strong engagement globally, but shopping is still dominated by users in North America

Ecommerce operators like Shopify can now also integrate their platforms with Pinterest using Pinterest extensions.

Pinterest’s first-quarter revenue is expected to be between $837 million and $852 million. Adjusted core earnings are projected to be between $155 million and $170 million, above the $140.8 million estimate.

Other social media companies like Meta and Snap also rose and posted strong quarterly results.

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SavedSOURCE : CNBC INDONESIA