Pinterest (PINS) AI Stock Analysis

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(NYSE:PINS)

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Outperform 78 (OpenAI - 4o)

Rating:78Outperform

Price Target:

$40.00

▲(19.05% Upside)

Pinterest's overall stock score is driven by strong financial performance and a positive earnings call, highlighting robust user growth and international revenue expansion. While technical analysis presents mixed signals, the company's reasonable valuation and strategic focus on AI and international markets support a favorable outlook. Challenges such as declining ad pricing and market uncertainties are noted but do not overshadow the company's growth potential.

Positive Factors

International Revenue Growth

Strong international revenue growth indicates successful market expansion and diversification, reducing reliance on domestic markets and enhancing long-term revenue potential.

AI-Driven Improvements

AI-driven enhancements improve user experience and ad performance, potentially increasing engagement and monetization, supporting sustainable growth.

Strong Financial Health

A strong balance sheet with low leverage and high cash flow generation enhances financial stability, providing flexibility for strategic investments and growth.

Negative Factors

Decline in Ad Pricing

A significant decline in ad pricing can impact revenue growth and profitability, challenging the company's ability to maintain margins and invest in future growth.

Operational Efficiency

Low operational margins suggest inefficiencies that could limit profitability and cash flow, potentially hindering reinvestment and competitive positioning.

Market Uncertainty Impact

Market uncertainties and tariff impacts can disrupt operations and revenue, posing risks to stability and growth, especially in sensitive regions.

Pinterest (PINS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$22.85B

Dividend YieldN/A

Average Volume (3M)8.99M

Price to Earnings (P/E)12.0

Beta (1Y)1.57

Revenue Growth17.00%

EPS Growth901.05%

CountryUS

Employees4,778

SectorCommunication Services

Sector Strength97

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.33

Shares Outstanding599,264,160

10 Day Avg. Volume9,852,254

30 Day Avg. Volume8,988,862

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.97

Enterprise Value/Revenue5.69

Enterprise Value/Gross Profit7.12

Enterprise Value/Ebitda92.84

Forecast

1Y Price Target

$44.00

Price Target Upside30.95% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering30

Pinterest Business Overview & Revenue Model

Company DescriptionPinterest, 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 MoneyPinterest makes money primarily through advertising. The company offers a range of advertising products, including Promoted Pins, which allow businesses to display their content to targeted audiences on the platform. Advertisers can leverage Pinterest's unique user demographics and interests to reach potential customers effectively. Additionally, Pinterest generates revenue through performance-based advertising, where advertisers pay based on engagement metrics such as clicks or impressions. The company has also formed partnerships with various brands and e-commerce platforms to enhance shopping experiences on the site, further contributing to its revenue streams. The focus on visual search and shopping capabilities has attracted significant investments in advertising, making it a key factor in Pinterest's earnings.

Pinterest Key Performance Indicators (KPIs)

Any

Monthly Active Users by Geography

Monthly Active Users by Geography
Tracks user engagement across different regions, highlighting where Pinterest is gaining traction and identifying markets with high growth potential or competitive challenges.

Chart InsightsPinterest's user growth has been robust, with a significant uptick in the Rest of World segment, reflecting a strategic focus on international expansion. This aligns with the earnings call highlighting a 10% year-over-year increase in global MAUs to 570 million. Despite challenges in ad pricing, the company's AI advancements are enhancing user experience and advertiser performance, driving positive outcomes. The continued growth in Europe and the US and Canada segments underscores Pinterest's successful efforts in expanding its user base and leveraging AI for improved engagement.

Data provided by:

Main Street Data

Pinterest Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong quarter for Pinterest, with record user growth and significant revenue increases, especially in international markets. The company showcased its success in leveraging AI for personalization and performance improvements. However, challenges like declining ad pricing and market uncertainties were noted. Despite these, the overall outlook remains positive with continued growth expected.

Q2-2025 Updates

Positive Updates

Record-Breaking User Growth

Pinterest ended Q2 2025 with 578 million MAUs, marking an 11% year-over-year increase and setting a new record high for users.

Revenue Growth and Strong Performance

Pinterest reported Q2 2025 revenue of $998 million, up 17% year-over-year, driven by stronger conversion and awareness objectives, and showing resilience despite macroeconomic challenges.

Gen Z Engagement

Over 50% of Pinterest's monthly active users are from Gen Z, indicating strong engagement with the next generation of users.

AI-Driven Improvements

Significant investments in AI have led to a 230 basis point lift in search fulfillment rate and improved personalization, benefiting both user experience and ad performance.

International Revenue Growth

Revenue from Europe grew by 34% and from Rest of World by 65%, showcasing strong international growth and market share gains.

Negative Updates

Decline in Ad Pricing

Ad pricing declined 25% year-over-year, primarily due to a shift in ad impressions from lower monetized international markets.

Tariff and Market Uncertainty Impact

Market uncertainty and tariff impacts, such as changes in the de minimis exemption, affected some areas like the UCAN region, particularly impacting Asia-based e-commerce retailers.

Company Guidance

During the call, Pinterest provided a comprehensive update on its financial performance and forward-looking guidance. For the second quarter of 2025, Pinterest reported 578 million monthly active users (MAUs), reflecting an 11% year-over-year increase. The company's revenue for the quarter reached $998 million, marking a 17% year-over-year growth, with notable strength in retail and financial services verticals. Geographically, revenue growth was reported at 11% in the U.S. and Canada, 34% in Europe, and 65% in Rest of World markets. The company also highlighted a 25% year-over-year decline in ad pricing, driven by increased ad impressions, which grew by 55%. For the third quarter of 2025, Pinterest expects revenue to range between $1.033 billion and $1.053 billion, representing a 15% to 17% increase year-over-year. Adjusted EBITDA is projected to be between $282 million and $302 million.

Pinterest Financial Statement Overview

Summary

Pinterest demonstrates strong financial health with impressive profitability and growth metrics. The company shows efficient revenue generation and cost management, supported by a strong balance sheet with low leverage and high equity. Cash flow generation is robust, further enhancing financial stability. However, there is room for improvement in operational efficiency as indicated by the relatively low EBIT and EBITDA margins.

Income Statement

Very Positive

Pinterest has shown strong revenue growth with a 3.84% increase in TTM, supported by a high gross profit margin of 79.86%. The net profit margin is impressive at 49.30%, indicating efficient cost management and profitability. However, the EBIT and EBITDA margins are relatively low at 6.34% and 5.98% respectively, suggesting room for improvement in operational efficiency.

Balance Sheet

Positive

The company maintains a solid financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The return on equity is robust at 44.93%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 89.06%, showcasing a strong equity base relative to total assets.

Cash Flow

Positive

Pinterest's cash flow is healthy, with a 9.98% growth in free cash flow. The operating cash flow to net income ratio is strong at 2.67, indicating efficient cash generation from operations. The free cash flow to net income ratio is high at 97.58%, suggesting effective conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.91B	3.65B	3.06B	2.80B	2.58B	1.69B
Gross Profit	3.12B	2.90B	2.37B	2.12B	2.05B	1.24B
EBITDA	239.29M	201.08M	-104.17M	-55.19M	353.69M	-89.40M
Net Income	1.93B	1.86B	-35.61M	-96.05M	316.44M	-128.32M
Balance Sheet
Total Assets	5.40B	5.34B	3.59B	3.86B	3.54B	2.61B
Cash, Cash Equivalents and Short-Term Investments	2.66B	2.51B	2.51B	2.70B	2.48B	1.76B
Total Debt	137.41M	185.79M	196.28M	228.97M	250.87M	182.95M
Total Liabilities	591.03M	591.51M	503.73M	581.08M	498.50M	367.09M
Stockholders Equity	4.81B	4.75B	3.09B	3.28B	3.04B	2.24B
Cash Flow
Free Cash Flow	1.05B	939.99M	604.90M	440.22M	743.88M	11.43M
Operating Cash Flow	1.07B	964.59M	612.96M	469.20M	752.91M	28.83M
Investing Cash Flow	-80.86M	-221.02M	-36.99M	-128.25M	-25.86M	-47.62M
Financing Cash Flow	-1.15B	-968.32M	-826.76M	-148.93M	22.16M	19.64M

Pinterest Technical Analysis

Technical Analysis Sentiment

Negative

Last Price33.60

Price Trends

50DMA

36.50

Negative

100DMA

35.04

Negative

200DMA

33.28

Positive

Market Momentum

MACD

-0.64

Positive

RSI

35.96

Neutral

STOCH

17.19

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PINS, the sentiment is Negative. The current price of 33.6 is below the 20-day moving average (MA) of 35.85, below the 50-day MA of 36.50, and above the 200-day MA of 33.28, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PINS.

Pinterest Risk Analysis

Pinterest disclosed 46 risk factors in its most recent earnings report. Pinterest reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Pinterest Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	78 Outperform	$22.85B	12.01	48.08%	―	17.00%	901.05%
OPRA	75 Outperform	1.68B	23.41	8.43%	4.14%	29.62%	-19.65%
YELP	73 Outperform	1.99B	14.24	19.98%	―	5.37%	13.08%
RDDT	73 Outperform	44.94B	202.68	9.06%	―	69.97%	―
MTCH	68 Neutral	8.72B	17.85	-232.94%	1.05%	-0.60%	-11.05%
SNAP	63 Neutral	13.97B	-25.38	-28.48%	―	13.18%	54.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

PINS

33.60

1.23

3.80%

YELP

Yelp

31.48

-3.60

-10.26%

SNAP

Snap

8.27

-2.43

-22.71%

OPRA

Opera

18.82

3.98

26.82%

MTCH

Match Group

36.24

-0.93

-2.50%

RDDT

Reddit Inc Class A

240.11

174.19

264.24%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 20, 2025