Pinterest shares surged 20% on Feb. 7, after the company forecasted first-quarter revenue exceeding market expectations.

The projected ranges from US$837 million to US$852 million, surpassing the average analyst estimate of US$832.8 million

Adjusted core earnings are also projected to range from US$155 million to US$170 million.

The increase is driven by enhanced AI-powered advertising tools, particularly the Performance+ suite, which has reduced advertiser input by 50% and boosted competitiveness.

In the fourth quarter, Pinterest reported record revenue of US$1.15 billion, supported by strong advertising demand in the retail, technology, and financial services.

Pinterest’s stock has shown historical volatility, dropping 14% in November after weak holiday quarter projections but jumping 21% after strong first-quarter results in April 2024.

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