Investors seeking to avoid market FOMO and looking for reasonably priced AI-related stocks in a market where many familiar names have already surged may want to consider Pinterest (PINS). The company remains a solid yet underappreciated AI beneficiary. The stock recently declined following a mixed Q3 earnings report, despite results being broadly strong, and the company continues to make meaningful progress with its AI initiatives.
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Unlike peers such as Meta (META) and Snap (SNAP), Pinterest’s share price has not yet fully reflected the enthusiasm surrounding AI. In fact, the stock has remained rangebound since 2022, within a tight $25-$40 range. However, a breakout may be looming…
The disconnect between fundamentals and valuation makes Pinterest an appealing candidate for “buy the dip” strategies. I remain optimistic about the stock due to its healthy revenue growth, rising monthly active users, and attractive valuation — without a single mention of the future potential of AI in sight. Sell-side analysts also hold a favorable view, collectively rating PINS a Strong Buy with an estimated 53% upside in 2026.
The AI-Powered Shopping Assistant
As a brief introduction for readers unfamiliar with the company, Pinterest describes itself as “a visual search and discovery platform where people find inspiration, curate ideas, and shop products—all in a positive place online.”
In practice, Pinterest functions as an image-based social media platform where users share visuals that reflect their interests—from houseplants to vintage denim. Because users browse with clear intent and often explore aesthetics or products they are considering purchasing, the platform is particularly compelling for advertisers. People come to Pinterest seeking inspiration, which naturally aligns with discovery-driven shopping behavior.
For instance, a user who regularly engages with boards featuring luxury watches is an ideal candidate for targeted ads from high-end retailers. Outbound clicks to advertisers increased 40% year-over-year in the most recent quarter and have expanded more than fivefold over the last three years—growth supported in part by AI-driven enhancements and automation that improve advertiser efficiency.
Pinterest CEO Bill Ready highlighted this momentum in the Q3 earnings call, noting: “Our investments in AI and product innovation are paying off. We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million consumers. In turn, global advertisers are increasingly counting on Pinterest as a go-to search platform to reach their customers and drive sales.”
The company is also integrating AI more deeply through Pinterest Assistant, a voice-activated conversational tool currently in testing. Ready explains that users will be able to ask natural-language questions such as “What outfits match this theme?” or “Make these home décor ideas brighter with a modern layout,” enhancing the platform’s utility as a shopping and creative companion.
Additional innovations include Boards for You—curated collections of fresh, personalized content delivered directly to the home feed—and new top-of-search ads, which appear within top search results and related pins. Together, these AI-powered features refine advertising precision while improving the user experience by helping shoppers discover products that align with their tastes and needs.
Overdone Market Selloff Post Q3
The company recently reported its Q3 earnings on November 4, and the stock slid 20% on the day. Over the past two weeks, the stock has remained compressed, shedding a further 6.5% last week. However, the results contained several strong highlights. Pinterest’s revenue grew 17% year-over-year to $1.05 billion, while global monthly active users (MAUs) rose 12% to 600 million.
This marked the ninth consecutive quarter of record user totals—demonstrating that engagement remains strong and continues to build. Net income also surged from $30.5 million in Q3 2024 to $92.1 million this year, representing a 201% increase.
Despite these encouraging metrics, shares declined sharply due to an EPS miss and slightly softer-than-expected Q4 guidance. Pinterest reported $0.38 EPS, below the $0.42 consensus estimate, although the figure still reflected 19% year-over-year growth. Meanwhile, Q4 revenue guidance of $1.31–$1.338 billion came in just under the $1.34 billion Wall Street expectation. Management cited macroeconomic uncertainty and new tariffs on home furnishings as potential headwinds for advertising demand.
Even so, the difference is marginal, and the outlook still implies solid mid-teens revenue growth. Given the company’s overall momentum, the market’s reaction appears disproportionate.
Amid Frothy AI Valuations, Pinterest Remains a Bargain
Despite its strong fundamentals, Pinterest’s shares remain surprisingly inexpensive. The stock trades at just 15.3x 2025 earnings estimates—well below the broader market, where the S&P 500 (SPX) trades at approximately 22.5x forward earnings. Looking further out, Pinterest appears even more attractively valued. Consensus estimates project $2 in earnings per share for 2026, implying a forward P/E of only 13.3x.
In contrast to many tech and AI-related stocks that have reached elevated valuations in 2025 amid AI-driven enthusiasm, Pinterest’s share price shows no signs of excess. This modest valuation provides a meaningful margin of safety and offers substantial room for upside through multiple expansion, particularly if the company continues to deliver steady growth and strong operational performance.
Is PINS Stock a Buy, According to Analysts?
Turning to Wall Street, PINS earns a Strong Buy consensus rating based on 17 Buys, five Holds, and zero Sell ratings assigned in the past three months. The average PINS stock price target of $39.80 implies ~55% upside potential from current levels.
Pinterest’s Post-Earnings Pullback Opens the Door for Bulls
Pinterest’s post-earnings selloff has opened a compelling opportunity to accumulate shares in a company that continues to post impressive revenue and user growth while rapidly advancing its AI capabilities. The platform is steadily evolving into a full-fledged “AI-powered shopping assistant,” supported by features such as enhanced visual search, advertiser automation, personalized content recommendations, and the upcoming Pinterest Assistant. These innovations position the company to benefit meaningfully from the broader adoption of AI-driven commerce.
Meanwhile, Pinterest’s valuation remains strikingly attractive—far lower than that of many tech and AI peers, despite its strong fundamentals and growing momentum. In my view, this combination of accelerating user engagement, expanding AI integration, and discounted pricing more than offsets the recent EPS miss and slightly conservative guidance. Over the long term, Pinterest’s underlying growth trajectory and AI-enabled product improvements are expected to prove far more influential than the short-term concerns that triggered the selloff.