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Pinterest Shares Soar 11% as Strong Ad Spend, AI Strategy Offset Tariff Uncertainty

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Pinterest (PINS) surged more than 11% on Friday, adding nearly $2 billion to its market capitalization, as investors welcomed a stronger-than-expected revenue forecast that defied broader concerns about advertising pullbacks amid geopolitical and trade volatility.

The visual discovery platform joins Reddit and Meta in delivering upbeat revenue figures for the quarter, at a time when U.S. trade policy shifts and rising global tensions have cast doubt over the marketing budgets of many digital firms.

Despite these headwinds, Pinterest’s AI-powered ad tools and expanding Gen Z user base are proving to be effective growth levers. Analysts praised the platform’s focus on delivering personalized and performance-driven ads, boosting advertiser confidence.

“AI is helping to serve up the right type of ads for different audience segments,” said Dan Coatsworth of AJ Bell. “There’s a greater propensity to click when the ad feels relevant.”

Key Metrics:

  • Global Monthly Active Users (MAUs): Up 10% YoY to 570 million, beating LSEG analyst estimates.

  • Forward P/E Ratio: Pinterest trades at 14.51x, more attractive compared to Reddit (67.65x) and Snap (22.19x).

While Asian e-commerce advertisers such as Temu and Shein pulled back spending due to the rollback of the “de minimis” import exemption, Pinterest’s international diversification and AI enhancements helped mitigate the impact.

“Pinterest’s strategic focus on AI improvements and international expansion is yielding results,” said Angelo Zino, senior equity analyst at CFRA.

Still, Barclays analysts cautioned that e-commerce ad trends could worsen later in the year if tariffs begin to directly hit consumer spending. Yet for now, Pinterest is outpacing competitors in converting ad impressions into meaningful business performance.

Pinterest’s stock performance and relatively modest valuation suggest it may be one of the more resilient digital ad plays as global marketing strategies adapt to economic uncertainty.

China Proposes Further Export Curbs on Battery and Critical Minerals Technology

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China’s Ministry of Commerce has proposed new export restrictions targeting technology used in processing critical minerals such as lithium and gallium, as well as in producing battery components, according to a document released on Thursday.

If implemented, the restrictions would follow a series of measures by Beijing to tighten control over critical minerals and related technologies, reinforcing its dominance in these sectors. These announcements come ahead of U.S. President Donald Trump’s second-term inauguration, during which he is expected to escalate trade restrictions on China.

Maintaining Lithium Dominance

China currently holds a 70% share of the global lithium processing market, critical for manufacturing electric vehicle (EV) batteries. Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, noted that the proposed measures would solidify China’s control over lithium chemical production for its domestic battery supply chain.

“These measures aim to sustain China’s high market share and ensure secure production for local supply chains,” Webb said. “However, they could create significant hurdles for Western lithium producers seeking access to Chinese technology for processing lithium chemicals.”

Impact on Global Battery and Mineral Industries

The proposed restrictions could disrupt the overseas ambitions of major Chinese battery manufacturers, including CATL, Gotion, and EVE Energy, by limiting their ability to export advanced technologies. Additionally, technologies related to gallium extraction could face similar constraints.

Gallium and lithium are crucial in the production of semiconductors, EV batteries, and renewable energy technologies. Restricting exports of processing technologies would not only bolster China’s domestic capabilities but could also amplify challenges for international competitors reliant on Chinese expertise and resources.

Next Steps

The public has until February 1 to provide feedback on the proposed changes. However, the document does not specify when these measures might take effect.

Analysts warn that if the restrictions are implemented, they could escalate existing tensions in global trade and technology markets, particularly as Western nations seek to reduce reliance on Chinese supply chains for critical minerals.

 

Asian Stocks Decline, Dollar Steady Amid Inflation Concerns and Geopolitical Risks

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Asian markets saw declines on Thursday, with the dollar marginally strengthening as investors evaluated mixed U.S. economic data. Signs of stalled inflation progress and rising geopolitical uncertainties, including reports of explosions in Ukraine, dampened risk sentiment.

The MSCI Asia-Pacific index, excluding Japan, fell by 0.4%, while Japan’s Nikkei index gained 0.48%. European markets, however, showed signs of a positive open, with futures for the Eurostoxx 50, German DAX, and FTSE indices edging higher.

Economic Data and Inflation Concerns

U.S. consumer spending rose slightly more than anticipated in October, yet inflation continues to exceed the Federal Reserve’s 2% target. This persistence, compounded by the incoming Trump administration’s tariff proposals, raises concerns about renewed price pressures.

The Federal Open Market Committee (FOMC) minutes from November indicated divisions among policymakers on future rate cuts. Despite this, market participants are pricing in a 65% likelihood of a rate reduction in December. Economists, including Kristina Clifton from the Commonwealth Bank of Australia, anticipate a 25 basis point cut but warn that steady inflation data in November could challenge these expectations.

Macquarie strategists noted that the potential tariff hikes could rekindle inflationary trends, marking a departure from the subdued inflation impact seen during the 2018-2019 tariff era.

Global Currency and Commodities Movements

In currency markets, the South Korean won weakened following an unexpected second consecutive rate cut by the Bank of Korea amid stalling economic growth. Meanwhile, the Japanese yen softened but remained near its one-month high on growing speculation of a rate hike by the Bank of Japan.

The euro declined slightly after European Central Bank board member Isabel Schnabel emphasized gradual rate cuts to neutral territory, pulling back expectations for deeper reductions. The dollar index edged up 0.11% to 106.23.

Commodities markets were steady. Oil prices held firm as Middle East supply concerns eased following a ceasefire between Israel and Hezbollah. Brent crude was priced at $72.8 per barrel, and U.S. West Texas Intermediate crude remained at $68.7. Gold was flat at $2,634 per ounce but is on track for its largest monthly loss in over a year, with a 4% drop in November.

Outlook

Thin trading volumes are expected with the U.S. Thanksgiving holiday, but investors remain cautious as inflation data and geopolitical risks continue to influence markets. Tariff uncertainties and central bank policy decisions will remain critical drivers for the global economy in the coming weeks.