Could Pinterest Stock (PINS) be the Next Big Breakout in Social Media Investing?

Pinterest (PINS) may not grab as many headlines as big names in the social media space, but its consistent performance is turning heads on Wall Street. As advertisers diversify beyond traditional platforms and users seek more inspiration-driven content, Pinterest is carving out a unique niche in the crowded social media space. However, investors are starting to wonder—could Pinterest be the next big breakout in the social media space? Let’s find out.

The Bullish Case

Pinterest, through its platform, enables users to explore, share, and save creative ideas in the form of images, videos, and links. Pinterest has struggled to regain momentum after the surge it experienced during the COVID-19 lockdowns, with its stock down 61% from its peak in February 2021. The current worry isn’t about post-pandemic corrections but rather the platform’s decelerating growth in the near term.

Nonetheless, Pinterest’s outlook might not be as bleak as it seems. Its platform improvements, including AI-powered tools for advertisers, could drive ad growth, and worries about losing users may be exaggerated. Moreover, the company expects Q2 revenue to land between $960 million and $980 million, marking a year-over-year growth of 12% to 15%. In Q1, it reported a 10% jump in monthly active users, hitting a record 570 million and surpassing expectations of 563.4 million. Notably, the stock is already up over 19% this year.

Furthermore, Pinterest makes far less money per user than rivals like Meta (META) and Snap (SNAP), so even a small increase in ad spending on its platform could have a big impact. If Pinterest captures just a small slice of the $500 billion global ad market, it could easily grow sales by 13–15% annually, matching what analysts expect in the next two years.

Why Analysts Think Pinterest Could Outperform

Overall, analysts remain bullish on PINS, citing rising user engagement and improved ad performance tools.

Recently, five-star-rated analyst Doug Anmuth upgraded the Pinterest stock to Buy from Hold and raised the price target to $40 from $35. Anmuth cited that Pinterest is using its full-funnel ad strategy and AI tools to win more ad dollars from big advertisers with annual revenues between $1 billion and $30 billion. Some of these larger brands are already allocating 5% to 10% of their ad budgets to the platform.

Similarly, top analysts from Citigroup, BMO Capital, and Wedbush have Buy ratings on PINS stock. Citigroup’s Ron Josey highlights strong user engagement, growing ad budgets, and better cost control. Meanwhile, BMO’s Brian Pitz points to Pinterest’s AI investments boosting ad click-through rates and monetization through improved targeting and visual search. Similarly, Wedbush’s Scott Devitt sees room for Pinterest to capture more advertiser spending.

Is PINS a buy sell or hold?

Turning to Wall Street, analysts have a Strong Buy consensus rating on PINS stock based on 24 Buys and six Holds assigned in the past three months. The average PINS price target of $39.54 per share implies a 14% upside potential.

See more PINS analyst ratings