After a report indicated Pinterest came out ahead of Snap Inc.’s Snapchat to take the spot as the third-largest social media platform in the United States, shares of the social media firm jumped by as high as 13 percent on Tuesday, Bloomberg reported.
Pinterest had an estimated 82.4 million U.S. users last year, and Snapchat possessed 80.2 million users, the report indicated per estimates from eMarketer.
“While Snapchat has a young core audience that it caters to, Pinterest has a more universal appeal, and it’s made significant gains in a wide range of age groups,” said Nazmul Islam, an eMarketer analyst, according to the report.
U.S. users of Pinterest are forecasted to increase 4.4 percent to 86 million this year. Facebook and Instagram had the top two spots. They are both owned by Facebook Inc.
Shares of Pinterest haven’t reportedly yet rebounded from losses following a third quarter revenue miss that led to a 17 percent November drop. Some analysts indicate the Q3 earnings results hint at U.S. market saturation. Bulls, however, claim the stock is still attractive as the company keeps developing its advertisement products.
Pinterest, for its part, makes much of its revenue from users in the U.S. The company is in the process of trying to bolster international ad sales.
In separate news, Pinterest announced in November a new feature that would let users make purchases from a selected number of online shops as it keeps growing. The Pinterest Shop feature has hundreds of so-called “Product Pins,” and users will have the ability to choose from 17 curated “shops.”
There are already millions of Product Pins, according to Pinterest, and they let users tap and shop from their own curated feeds for larger brands like The Home Depot and Target. The company is also working on a search feature that would allow item recognition for fashion and home products.
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