Pinterest’s Search Volume Surpasses ChatGPT Amid Earnings Challenges
In the wake of underwhelming fourth-quarter earnings, Pinterest’s CEO, Bill Ready, has highlighted the platform’s significant search volume, positioning it ahead of the widely-used AI chatbot, ChatGPT. According to Ready, Pinterest processes approximately 80 billion searches monthly, surpassing ChatGPT’s 75 billion. Notably, over half of Pinterest’s searches are commercial in nature, compared to an estimated 2% for ChatGPT.
Despite this impressive search activity, Pinterest reported revenues of $1.32 billion for the quarter, slightly below the anticipated $1.33 billion. Earnings per share stood at 67 cents, missing the projected 69 cents. The company attributes these shortfalls to reduced spending by major advertisers, particularly in Europe, and the impact of a new furniture tariff introduced in October, which affected the home category. These challenges are expected to persist into the first quarter of 2026, with projected sales between $951 million and $971 million, falling short of the $980 million forecasted.
Interestingly, Pinterest’s user base has grown faster than expected, with monthly active users increasing by 12% year-over-year to 619 million, surpassing Wall Street’s estimate of 613 million. However, this growth has not translated into proportional advertising revenue, as users often engage with Pinterest for planning and inspiration rather than immediate purchasing.
The rise of AI-driven platforms like ChatGPT presents additional challenges for Pinterest. Advertisers may gravitate towards platforms where user intent to purchase is more explicit, such as AI chatbots that provide direct product recommendations. To address this, Pinterest is focusing on enhancing its visual search and discovery features to better align with evolving consumer behaviors and maintain its competitive edge in the digital advertising landscape.
