Pinterest vs Rumble: how two AI strategies compare on fundamentals

Investing.com reports a compelling contrast between Pinterest and Rumble in their AI strategies. Pinterest (PINS) trades at $19.62, up 2.99%, while Rumble (RUM) is at $8.08, up 12.69%. Pinterest's AI strategy is built around compact, open-source models trained on their proprietary data, resulting in lower costs, greater control, and a unique moat.

This has led to a significant shift from predominantly upper-funnel brand advertising to lower-funnel performance ads, with revenue from clicks to advertisers increasing five-fold in three years. Pinterest's growth is impressive, with 12 consecutive quarters of record user growth, a majority of users now being Gen Z, and the acquisition of the connected TV and performance ads company tvScientific.

Rumble, on the other hand, has pivoted to power AI infrastructure with 22,000 NVIDIA H100/H200 GPUs, secured through a $13.7B GPU deal. GPU utilization has surged to over 83%, and 250 MW of grid-connected power capacity is expected online in 2027. The company is deeply unprofitable, with a -134.6% net margin and -$90.85M EBITDA LTM, as it builds the infrastructure.

Traditional value metrics favor Pinterest, with a 79.5% gross margin, 11.6% FCF yield, forward P/E of 9.1x, and a fair value of $26.77, compared to the current $19.62. Rumble is positioned as a high-conviction turnaround bet, while Pinterest is a profitable, growing platform being undervalued. The AI integration on Pinterest is operational and improving monetization, while Rumble's potential remains contingent on the successful execution of the Quake AI infrastructure.