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Pinterest is undergoing a significant strategic reset, marked by its largest acquisition since 2022 – tvScientific – and a renewed focus on artificial intelligence to enhance user experience and drive commerce. The moves come as the visual discovery platform navigates a challenging period for its stock, with shares facing substantial declines over the past year. This pivot aims to capitalize on the growing connected TV (CTV) advertising market and leverage AI-powered personalization to convert its substantial user base into revenue.
The acquisition of tvScientific signals Pinterest’s intent to compete directly in the performance advertising space for CTV, a rapidly expanding segment where companies like Meta, Alphabet, and TikTok are also vying for market share. Simultaneously, Pinterest is bolstering its leadership with the addition of Kecia Steelman, the President and Chief Executive Officer of Ulta Beauty, to its Board of Directors, effective February 16, 2026. This board refresh is designed to bring retail expertise to the forefront as Pinterest increasingly focuses on shopping features and advertising solutions.
But, this transformation unfolds against a backdrop of financial pressure. As of February 2026, Pinterest’s stock has fallen 57.7% over the past year and 80.5% over five years, closing recently at $16.38 after declines of 14.2% in the past week and 36.8% in the past month. The company’s 2025 sales reached $4,221.77 million, an increase from $3,646.17 million the previous year, but net income decreased to $416.86 million from $1,862.11 million, with diluted earnings per share at $0.61 versus $2.67. These figures highlight the execution risk Pinterest faces as it invests in new technologies and restructures its business.
Expanding into Connected TV Advertising
The acquisition of tvScientific is central to Pinterest’s strategy to tap into the growing CTV advertising market. The deal will allow Pinterest to offer outcome-based, performance-driven advertising solutions on connected TV platforms, providing advertisers with a new channel to reach its highly engaged audience. This move is particularly significant given the increasing shift of viewers from traditional television to streaming services.
AI-Powered Personalization and Shopping
Alongside the CTV expansion, Pinterest is heavily investing in AI to reshape the user experience. These AI-powered tools are designed to enhance personalization and improve shopping features, making the platform more actionable for both brands and users. The goal is to deepen engagement and support more diversified revenue streams through visual search and improved ad targeting.
New Board Member Brings Retail Expertise
The appointment of Kecia Steelman to the Board of Directors is a strategic move to strengthen Pinterest’s commerce capabilities. Steelman, a seasoned executive with decades of experience in retail, currently serves as the President and CEO of Ulta Beauty. Her expertise is expected to guide Pinterest’s advertising and commerce initiatives, particularly as the platform aims to attract and retain retail advertisers. She will also serve on the Talent Development and Compensation Committee, as noted in an SEC filing.
Challenges and Opportunities Ahead
Despite these strategic moves, Pinterest faces ongoing challenges. Advertising demand from large retailers has been sensitive to economic factors like tariffs and margin pressures, potentially impacting revenue and earnings guidance. The company’s ability to successfully integrate tvScientific and demonstrate a meaningful contribution from CTV campaigns will be crucial. Tracking trends in net income and adjusted EBITDA as AI and CTV investments mature will be key indicators of the company’s progress.
Looking ahead, investors will be closely watching Pinterest’s first quarter 2026 revenue, which the company has guided to be between $951 million and $971 million, benefiting from a 3-point foreign exchange tailwind. The successful execution of its new strategy, coupled with a favorable economic environment, will be essential for Pinterest to regain investor confidence and drive sustainable growth.
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Disclaimer: This article provides informational content only and should not be considered financial advice. Consult with a qualified financial advisor before making any investment decisions.