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Pinterest shares tumbled after the social media company reported revenue that missed estimates, and gave a weaker-than-expected forecast.
Strong earnings from heavyweights like Meta and Amazon may point to some improvement in the digital ad market, but results from Pinterest could suggest smaller firms might have a tougher time capturing some of the gains.
However, analysts anticipate a strong 2024 for Pinterest, citing new partnerships with Google and Amazon, growth in regions outside the US, and investments in new products on the Pinterest platform.

Pinterest said its fourth-quarter revenue rose 12% from a year ago to $981 million, but that was below estimates. For the full year, revenue was up 9% to $3.06 billion, though Pinterest still posted a net loss of $35.6 million for the year. Europe was a bright spot in the fourth quarter, with revenue up 32

Pinterest's Global Monthly Active Users (MAUs) grew 11% to 498 million, but the company issued a weaker-than-expected guidance, with first-quarter revenue expectations of $690 million to $705 million.

Strong earnings from heavyweights like Amazon (AMZN) and Meta (META) may point to some improvement in the digital ad market, but results from Pinterest could suggest smaller firms might have a tougher time capturing some of the gains.

However, JPMorgan analysts said they anticipated a strong 2024 for Pinterest, citing new partnerships with Google and Amazon, growth in regions outside the US, and investments in new products on the Pinterest platform.

On Pinterest's earnings call, CEO Bill Ready said that Pinterest is “under-monetized internationally,” with 80% of its users outside the US, though they only account for 20% of its revenue.

Analysts at Jeffries were bullish on Pinterest, saying the "fastest rev growth rates are still ahead."

Shares of Pinterest closed 9.4% lower at $36.87 per share Friday. They've gained about 48% over the past year.

The Fed is closely monitoring inflation data to determine how soon to cut its key interest rate

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The Consumer Price Index likely rose 2.9% over the year ending January, the slowest year-over-year inflation since March 2021, forecasters predict.

Policymakers at the Federal Reserve are watching inflation data closely to determine how soon, and how quickly, to cut the Fed's key interest rate.
Cooling inflation could help household budgets on two fronts: easing price increases and, if the Fed cuts rates, reducing borrowing costs on all kinds of loans that currently have interest near multi-decade highs.

Forecasters are expecting Tuesday's report on the Consumer Price Index (CPI) to deliver good news about inflation. The CPI, a widely-watched gauge of inflation compiled by the Bureau of Labor Statistics, likely rose 2.9% over 12 months ending January, the lowest in nearly three years, according to a survey of economists by Dow Jones Newswires and the Wall Street Journal. 1 Marketwatch. "US Economic Calendar." Forecasters are anticipating January's report to more than wipe out an unwelcome inflation uptick in December.


This and other inflation reports over the next few months could be key in determining how soon, and how quickly, the Federal Reserve will cut its interest benchmark rate. Recent reports have shown inflation running at or near the Fed's goal of a 2% annual rate , but Fed Chair Jerome Powell said he and other Fed policymakers want more “confidence” that inflation has been tamed before cutting rates.


If forecasts pan out, the consumer price index could help provide that confidence. Falling energy prices and a slowdown in food price increases could reduce the overall inflation rate, economists at RBC said in a commentary. However, stubbornly high rent increases could keep “core ” CPI, which excludes food and energy prices, from falling too much. That's important because policymakers look at core inflation measures as a more reliable indicator of future inflation trends.  


2 Next week's data is especially key for financial markets looking for respite from the Fed's benchmark funds fed rate, which has sat at a 23 -year high since July. The Fed's rate hikes starting in March 2022 were intended to curb inflation but did so at the cost of pushing up interest rates to multi-decade highs on all kinds of loans. 


A majority of traders are currently betting that the Fed will begin to cut interest rates at its meeting in May, according to the CME Group's FedWatch tool, which forecasts Fed rate hikes based on fed funds futures trading data. 3 Fed watchers have been expecting rate cuts for months as inflation has cooled, only to be repeatedly disappointed. owell and other Fed officials have said they're in no hurry to make cuts since the economy isn't yet cracking under the weight of high interest rates.Do you have a news tip for Investopedia producers? Please email us attips@investopedia.com

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Nvidia shares captured to a fresh high Friday following reports the company plans to create a new business unit focused on custom chips.
The new unit could help Nvidia reinforce its position as the world's most valuable chip company.
Nvidia is set to report its results for the fourth quarter of fiscal 2024 after the bell on Wednesday,


 Feb. 21. Nvidia (NVDA) shares pursued to a fresh high in intraday trading Friday after reports the chipmaker is planning to launch a new business unit focused on custom chips, including those powering artificial intelligence (AI). 1 The company's shares were up over 3% at $717.71 per share as of about 2:15 pm ET Friday, after rising as high as $718.14 during the session.


 The stock has gained nearly 50% so far this year. The chipmaker is reportedly "building a new business unit focused on designing bespoke chips for cloud computing firms and others, including advanced artificial intelligence processors," Reuters reported Friday, citing sources familiar with the company.


The new unit could help Nvidia capture a piece of the growing market for custom chips as well as reinforce its position as the world's most valuable chip company amid the AI ​​boom. The record high comes just days after Nvidia reached its previous high on Monday when Goldman analysts raised their price objective and their upgraded rating to "buy," citing gains from surging AI demand.


Nvidia, alongside some other "Magnificent 7" companies including Amazon (AMZN), Meta (META), and Alphabet (GOOGL), could lead S&P 500 earnings growth for the first quarter of 2024, Factset projects. Nvidia is set to report its results for the fourth quarter of fiscal 2024 after the bell on Wednesday, Feb. 21.