Pinterest (PINS) AI Stock Analysis

• Market Cap: $11.97B
• Dividend Yield: N/A
• Average Volume (3M): 23.06M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.42
• Revenue Growth: 16.79%
• EPS Growth: 819.94%
• Country: US
• Employees: 4,778
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.67
• Shares Outstanding: 561,140,100
• 10 Day Avg. Volume: 21,734,544
• 30 Day Avg. Volume: 23,062,395
• PEG Ratio: -0.54
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 13.95
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 3.52
• Enterprise Value/Ebitda: 29.61
• 1Y Price Target: $24.33
• Price Target Upside: 30.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 32
• EPS Forecast (FY): 1.78
• Revenue Forecast (FY): $4.75B

• Rating: 68 Neutral
• Price Target: $21.00 ▲(12.42% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by strong financial quality (high margins, low leverage, and strong free-cash-flow generation) and a generally constructive earnings outlook despite acknowledged near-term monetization and execution headwinds. These positives are materially offset by weak technicals (price below key moving averages with negative MACD) and a relatively expensive valuation (high P/E with no dividend support).

Positive Factors

Free Cash Flow Strength

Consistently rising free cash flow and near-100% conversion show durable cash generation that funds investment, buybacks, and AI capacity without reliance on new debt. This underpins capital flexibility and resilience through revenue cycles over the next 2–6 months and beyond.

High and Stable Gross Margins

Sustained ~75–80% gross margins indicate structurally advantaged unit economics from a scalable, low-variable-cost ad platform. High gross margins provide room to invest in AI and sales while preserving operating profitability as revenue mix shifts internationally.

Large Engaged User Base & Commercial Intent

A large, steadily growing user base with extremely high commercial-intent search volume creates durable monetization opportunity. Deepening engagement metrics and commercial queries support long-term advertiser demand if sales/sophistication convert intent into spend.

Negative Factors

Ad Pricing Decline

A 19% year-over-year decline in ad pricing signals structural pricing pressure from mix shift to under-monetized markets and product mix. Persistently lower CPMs could compress revenue growth and require sustained product and sales improvements to restore pricing power over several quarters.

Revenue Concentration & Tariff Exposure

Concentrated exposure to large retail advertisers and sensitivity to trade/tariff shocks create recurring revenue volatility. Such customer concentration makes top-line outcomes vulnerable to exogenous trade policy changes and industry-specific ad spend pullbacks over the medium term.

Convertible Financing & Shareholder Influence

Issuing $1B of convertible notes increases future equity dilution risk if conversion triggers are met and deepens activist investor influence. That can alter strategic priorities and capital allocation, creating potential governance and dilution considerations spanning multiple years.

Pinterest Business Overview & Revenue Model

Company Description

Pinterest, Inc. operates as a visual discovery engine in the United States and internationally. The company's engine allows people to find inspiration for their lives, including recipes, style and home inspiration, DIY, and others; and provides video, product, and idea pins. It shows visual machine learning recommendations based on pinners taste and interests. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

How the Company Makes Money

Pinterest generates revenue primarily through advertising, offering various ad formats such as promoted pins, video ads, and shopping ads. These ads are integrated within users' feeds and are designed to blend seamlessly with organic content, enhancing user engagement. The company operates on a cost-per-click (CPC) basis, where advertisers pay when users interact with their promoted content. Additionally, Pinterest has established partnerships with retailers and brands, allowing them to showcase their products directly on the platform. The company also monetizes through data analytics services that provide insights to advertisers about user behavior and trends, further enhancing its advertising offerings.

Pinterest Financial Statement Overview

Summary

Strong overall fundamentals supported by a low-leverage balance sheet (very low debt-to-equity), high and stable gross margins (~75–80%), and strong/free-cash-flow generation that scaled materially through 2025. Offsetting factors are moderating revenue growth versus earlier years and profitability volatility (notably net margin swings across 2022–2025), which reduces earnings predictability.

Income Statement

Revenue has grown steadily over time (strong growth in 2020–2021, then moderating through 2023–2025), while gross margins remain very high and stable around ~75–80%, indicating strong unit economics. Profitability is improving from losses in 2022–2023 to positive earnings in 2025, but operating profitability is still relatively modest versus the revenue base (mid-single-digit EBITDA margin in 2024–2025). A key weakness is earnings volatility—net margin swung from negative (2022–2023) to unusually high in 2024 and then normalized in 2025—suggesting results are not yet consistently predictable.

Balance Sheet

The balance sheet looks conservatively financed, with very low leverage (debt-to-equity consistently ~0.04–0.08) and equity building over time alongside asset growth. Returns on equity improved meaningfully with the return to profitability (strong in 2024 and positive in 2025), though it was negative during 2022–2023, reflecting prior earnings pressure. Overall risk from debt appears limited, with the main balance-sheet sensitivity being to profitability cycles rather than leverage.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow have scaled materially from 2020 to 2025, and free cash flow closely tracks reported earnings in recent years, supporting earnings quality. Free cash flow growth is strong in the latest annual period (2025), following more moderate growth in 2024 and a decline in 2022, so the trajectory is positive but not perfectly smooth. Overall, the company demonstrates strong cash conversion and ample internally generated liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.22B	3.65B	3.06B	2.80B	2.58B
Gross Profit	3.38B	2.90B	2.37B	2.12B	2.05B
EBITDA	345.03M	201.08M	-104.17M	-55.19M	353.69M
Net Income	416.86M	1.86B	-35.61M	-96.05M	316.44M
Balance Sheet
Total Assets	5.51B	5.34B	3.59B	3.86B	3.54B
Cash, Cash Equivalents and Short-Term Investments	2.47B	2.51B	2.51B	2.70B	2.48B
Total Debt	262.02M	185.79M	196.28M	228.97M	250.87M
Total Liabilities	765.69M	591.51M	503.73M	581.08M	498.50M
Stockholders Equity	4.75B	4.75B	3.09B	3.28B	3.04B
Cash Flow
Free Cash Flow	1.25B	939.99M	604.90M	440.22M	743.88M
Operating Cash Flow	1.28B	964.59M	612.96M	469.20M	752.91M
Investing Cash Flow	-134.48M	-221.02M	-36.99M	-128.25M	-25.86M
Financing Cash Flow	-1.32B	-968.32M	-826.76M	-148.93M	22.16M

Pinterest Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PINS, the sentiment is Neutral. The current price of 18.68 is above the 20-day moving average (MA) of 18.47, below the 50-day MA of 20.75, and below the 200-day MA of 29.66, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 41.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PINS.

Pinterest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	72 Outperform	$26.72B	80.88	20.89%	―	69.71%	―
YELP	71 Outperform	$1.46B	13.22	19.96%	―	5.35%	33.74%
PINS	68 Neutral	$11.97B	41.90	8.74%	―	16.79%	819.94%
BILI	65 Neutral	$10.36B	62.04	8.04%	―	16.84%	―
MTCH	65 Neutral	$7.23B	12.77	-275.39%	2.32%	-0.46%	-2.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SNAP	55 Neutral	$7.57B	-29.98	-20.72%	―	11.75%	49.19%

Pinterest Corporate Events

Pinterest Raises $1 Billion via Convertible Notes Financing

On March 3, 2026, Pinterest, Inc. entered into an investment agreement with Elliott Associates, L.P. and Elliott International, L.P. for the sale of $1 billion of 1.75% Convertible Senior Notes due 2031, and the transaction closed on March 5, 2026 with issuance of the notes to Elliott. The notes, issued under an indenture with U.S. Bank Trust Company, carry a 1.75% semi-annual coupon, mature on March 1, 2031, are convertible into Class A common stock at an initial price of about $22.72 per share under specified stock-price and timing conditions, and include customary redemption, repurchase-on-change-of-control and default provisions, providing Pinterest with significant financing while giving Elliott structured upside exposure.

Pinterest may redeem the notes for cash on or after March 5, 2029 if its Class A shares trade at least 130% of the then-effective conversion price for a defined period, subject to a minimum outstanding principal threshold. Holders have the right to require repurchase at par plus accrued interest upon certain fundamental changes, and the issuance relied on a private placement exemption under U.S. securities laws, signaling a sizable capital raise structured to balance Pinterest’s funding needs with investor protections and potential equity dilution over time.

The most recent analyst rating on (PINS) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest seals Elliott investment deal and buyback expansion

On March 3, 2026, Pinterest entered into an investment agreement with Elliott Investment Management for a $1 billion purchase of 1.75% convertible senior notes due 2031, with an initial conversion price of about $22.72 per share, a 30% premium to the prior close. The deal deepens Elliott’s role as a key shareholder and board influence, keeping partner Marc Steinberg on the board and aligning Pinterest with a prominent activist investor that has publicly affirmed confidence in the company’s growth trajectory and AI-driven product innovation.

Pinterest’s board on March 2, 2026 authorized a new $3.5 billion share repurchase program, replacing its November 2024 authorization, and simultaneously launched a $1 billion accelerated share repurchase with Goldman Sachs to be funded from Elliott’s investment. Combined with $473 million of buybacks already completed this year and up to $500 million of intended additional repurchases under a Rule 10b5-1 plan, the company is signaling that it views its stock as undervalued and is committing roughly $2 billion to near-term capital returns, while leaving about $2.5 billion of repurchase capacity available for future deployment.

The most recent analyst rating on (PINS) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Closes tvScientific Acquisition, Raises Q1 2026 Outlook

On February 17, 2026, Pinterest, Inc. closed its previously announced acquisition of tvScientific, Inc., integrating the acquired business into its operations and financial reporting. Following the completion of this transaction, Pinterest updated its first-quarter 2026 guidance to forecast revenue between $958 million and $978 million and Adjusted EBITDA between $163 million and $183 million, reflecting the expected partial-quarter contribution from tvScientific to the company’s consolidated results and signaling a modest uplift to near-term financial performance.

The company noted that it is not providing a forward-looking GAAP reconciliation for Adjusted EBITDA because of uncertainties around items such as share-based compensation and income taxes, which could materially affect future GAAP outcomes. This approach underscores both the complexity of forecasting post-acquisition financial impacts and the potential variability in reported earnings measures that investors will need to factor into their assessment of Pinterest’s profitability and integration progress.

The most recent analyst rating on (PINS) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Adds Ulta CEO Kecia Steelman to Board

Pinterest has appointed Kecia Steelman, President and Chief Executive Officer of Ulta Beauty, to its board of directors as a Class II independent director, effective February 16, 2026, and she will also join the Talent Development and Compensation Committee. The February 9, 2026 announcement underscores Pinterest’s strategy to strengthen its board with veteran retail and omnichannel expertise as it advances its ambitions to be a leading visual discovery and AI-powered shopping platform for users, brands and advertisers.

Steelman brings more than 30 years of experience leading large-scale retail businesses, including senior roles at Ulta Beauty, Family Dollar Stores, Home Depot and Target, and she currently serves on several other boards. Her appointment is expected to support Pinterest’s next phase of growth by deepening its connections with brands and enhancing its position as a go-to shopping and performance ad platform, potentially benefiting stakeholders across the company’s global commerce and advertising ecosystem.

The most recent analyst rating on (PINS) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Launches Global AI-Focused Workforce Restructuring Plan

On January 26, 2026, Pinterest announced a board-approved global restructuring plan that will reduce less than 15% of its workforce and shrink office space, with expected pre-tax restructuring charges of approximately $35 million to $45 million, largely in cash, to be excluded from its non-GAAP metrics such as Adjusted EBITDA. The plan, expected to be completed by the end of the third quarter of 2026, is designed to accelerate the company’s transformation by reallocating resources to AI-focused roles, prioritizing AI-powered products and capabilities, and revamping its sales and go-to-market approach, while simultaneously reinvesting in key development areas and strategic opportunities despite near-term headcount reductions.

The most recent analyst rating on (PINS) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Names Claude Brown as New Chief Business Officer

On January 20, 2026, Pinterest appointed Claude (Lee) Brown as Chief Business Officer, tasking him with oversight of the company’s global sales, content, customer-facing operations, and advertising product marketing. Brown brings extensive digital advertising and revenue-leadership experience from prior roles as Chief Revenue Officer at DoorDash and BuzzFeed, and as Vice President, Global Head of Advertising at Spotify, along with senior positions at Tumblr, Groupon, and Yahoo, a background that is expected to strengthen Pinterest’s commercial strategy and bolster its competitive position in the online advertising market.

The most recent analyst rating on (PINS) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.