Amid disappointing earnings, Pinterest claims it sees more searches than ChatGPT

Following a disappointing fourth-quarter financial report, Pinterest's CEO, Bill Ready, made headlines by asserting that the platform receives more searches than the widely popular AI chatbot, ChatGPT. In an effort to position Pinterest as a key search destination, Ready claimed that the site records approximately 80 billion searches monthly, compared to ChatGPT's 75 billion. He emphasized that over half of Pinterest's searches are commercial, contrasting sharply with the mere 2% of ChatGPT searches that are aimed at shopping. Despite this assertion, Pinterest's recent earnings report fell short of expectations. The company generated $1.32 billion in revenue, slightly below the anticipated $1.33 billion, and reported earnings per share of 67 cents, missing the projected 69 cents. Looking ahead, Pinterest forecasts first-quarter 2026 sales between $951 million and $971 million, which again undercuts the $980 million analysts had hoped for. The company attributed these setbacks to a reduction in spending from larger advertisers, particularly in Europe, alongside complications arising from a new furniture tariff introduced in October. Interestingly, Pinterest's user base is expanding at a faster rate than expected, with monthly active users climbing 12% year-over-year to 619 million, surpassing Wall Street's forecast of 613 million. However, this growth did not translate into financial success, as shares plummeted 20% in after-hours trading. Pinterest has consistently faced challenges in converting high user engagement into advertising revenue. Users typically engage with the platform to explore ideas and plan projects rather than to make purchases. This issue may become more pronounced in an era increasingly dominated by AI, as advertisers might favor platforms that demonstrate clearer purchasing intent, such as those driven by chatbot interactions. In response to the evolving landscape, Ready highlighted Pinterest's advancements in visual search and personalized discovery features, which are designed to guide users towards relevant products as they browse. He indicated that the app aims to facilitate commercial journeys without requiring users to type prompts, and mentioned a smoother checkout process resulting from a partnership with Amazon. While he acknowledged that consumers are not yet comfortable with AI making purchases on their behalf, he expressed confidence that Pinterest is prepared for such a shift in the future, stating it would be one of the easiest aspects to address.