Social media platform Pinterest (PINS) is scheduled to announce its results for the first quarter of 2025 after the market closes on Thursday, May 8. PINS stock has declined about 7% year-to-date due to concerns about macro challenges impacting ad spending. Despite near-term pressures, most analysts covering Pinterest stock remain bullish due to expectations of continued growth in revenue, monthly active users (MAUs), and cash flows, artificial intelligence (AI) enhancements to the platform, and strategic partnerships with Amazon (AMZN) and Alphabet’s (GOOGL) Google. Wall Street expects Pinterest’s Q1 earnings per share (EPS) to come in at $0.26, indicating a 30% growth compared to the prior-year quarter.
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Further, analysts forecast Q1 revenue of $846.48 million, reflecting a 14.4% year-over-year growth.
Pinterest impressed investors with its stellar Q4 2024 results. As indicated by Main Street Data in the chart below, MAU from Rest of World jumped 15.4% in Q4 2024, while MAU growth in the U.S. and Canada and Europe was 4% and 7%, respectively. Overall, Pinterest’s Q4 2024 MAU grew 11% to 553 million.
Analysts’ Views Ahead of Pinterest’s Q1 Earnings
Heading into the Q1 2025 results, Evercore analyst Mark Mahaney reiterated a Buy rating on Pinterest stock with a price target of $50. The 5-star analyst expects the company to report a “Modest Beat & Bracket Q1.” However, he expects the Q2 guidance variance to be more likely to the downside than the upside due to significant macro challenges.
Based on intra-quarter data points and Evercore’s model sensitivity analysis, Mahaney sees the Street’s consensus for Q1 revenue (27% sequential decline), EBITDA margin (19%), and MAUs (a sequential increase of 10 million) as likely achievable. The analyst added that his checks have indicated that ad spend in most categories remained relatively stable for much of the first quarter, though the CPG (consumer packaged goods), home improvement, fashion, and travel verticals likely weakened exiting the quarter, which makes the analyst slightly more cautious on Pinterest.
Likewise, Benchmark analyst Mark Zgutowicz lowered the price target for PINS stock to $45 from $55, while reaffirming a Buy rating. The 5-star analyst said that he reduced his Q1 and full-year revenue estimates to $848 million and $5.154 billion, respectively, to reflect his “conservatism” around the macro backdrop. That said, Zgutowicz still thinks that his revenue and ARPU expectations for the U.S. and Canada division and Europe are conservative.
Options Traders Anticipate a Major Move on Pinterest’s Q1 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 13.7% move in either direction in Pinterest stock in reaction to Q1 results.
Is PINS Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on Pinterest stock based on 25 Buys and seven Holds. The average PINS stock price target of $40.96 implies about 52% upside potential from current levels.
