Pinterest (PINS) AI Stock Analysis

• Market Cap: $23.09B
• Dividend Yield: N/A
• Average Volume (3M): 9.69M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.50
• Revenue Growth: 17.00%
• EPS Growth: 901.05%
• Country: US
• Employees: 4,778
• Sector: Communication Services
• Sector Strength: 85
• Industry: Internet Content & Information
• EPS (TTM): 0.33
• Shares Outstanding: 594,233,800
• 10 Day Avg. Volume: 14,195,866
• 30 Day Avg. Volume: 9,688,467
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 5.40
• P/FCF Ratio: 20.94
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 5.91
• Enterprise Value/Gross Profit: 7.42
• Enterprise Value/Ebitda: 103.25
• 1Y Price Target: $43.83
• Price Target Upside: 28.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 30

• Rating: 76 Outperform
• Price Target: $40.00 ▲(16.99% Upside)

Pinterest's overall stock score is driven by strong financial performance and promising earnings call insights, particularly in user growth and AI advancements. While technical analysis presents mixed signals, the stock's valuation suggests potential upside. Challenges such as declining ad pricing and infrastructure costs are notable but do not overshadow the company's growth prospects.

Positive Factors

AI Integration

AI-driven site improvements are enhancing user engagement and increasing shopping activity, contributing to revenue momentum.

Revenue Performance

Pinterest's 2Q25 revenue results were above expectations, driven by strong MAU growth and impressive performance in Retail and Financial Services.

User Growth

Pinterest's monthly active users reached 578 million, surpassing estimates and indicating strong user growth.

Negative Factors

EBITDA Guidance

3QE Adj. EBITDA guidance missed expectations by 3%, impacting the overall margin expansion outlook.

UCAN ARPU

UCAN ARPU was disappointing, partly due to a weaker contribution from China-based advertisers.

US Revenue Growth

A slowdown in US revenue growth was noted, partly due to a bigger tariff impact on Asia retailer ad spend.

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 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 Financial Statement Overview

Summary

Pinterest's financial performance is commendable with strong revenue growth, high gross margins, and improving profitability. The balance sheet remains robust with minimal leverage, while cash flow metrics indicate efficient cash generation. Future focus on enhancing operational efficiency and capital allocation could further boost financial health.

Income Statement

Pinterest has demonstrated robust revenue growth with a TTM revenue of $3.76 billion, up from $3.05 billion in 2023, reflecting a positive growth trend. Gross profit margin remains strong at 79.6% in the TTM, indicating efficient cost management. Net profit margin improved significantly to 50.4% in the TTM from negative figures in previous years, showcasing enhanced profitability. However, the EBIT margin at 5.28% and EBITDA margin at 5.72% are relatively modest, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.03, reducing financial risk. The equity ratio stands at 88.74%, indicating a strong capital structure. Return on equity has improved significantly, reaching 40.43% in the TTM, reflecting strong shareholder value creation. However, the relatively large cash holdings suggest potential inefficiency in capital allocation.

Cash Flow

Pinterest has shown consistent free cash flow growth, with TTM free cash flow reaching $952 million, up from $604 million in 2023. The operating cash flow to net income ratio is healthy at 0.51, suggesting efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.50, indicating solid cash profitability. Continued improvement in cash management and investment strategies could further strengthen cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.76B	3.65B	3.06B	2.80B	2.58B	1.69B
Gross Profit	2.99B	2.90B	2.37B	2.12B	2.05B	1.24B
EBITDA	215.16M	201.08M	-104.17M	-55.19M	353.69M	-89.40M
Net Income	1.90B	1.86B	-35.61M	-96.05M	316.44M	-128.32M
Balance Sheet
Total Assets	5.28B	5.34B	3.59B	3.86B	3.54B	2.61B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.51B	2.51B	2.70B	2.48B	1.76B
Total Debt	143.96M	185.79M	196.28M	228.97M	250.87M	182.95M
Total Liabilities	594.23M	591.51M	503.73M	581.08M	498.50M	367.09M
Stockholders Equity	4.69B	4.75B	3.09B	3.28B	3.04B	2.24B
Cash Flow
Free Cash Flow	952.37M	939.99M	604.90M	440.22M	743.88M	11.43M
Operating Cash Flow	972.15M	964.59M	612.96M	469.20M	752.91M	28.83M
Investing Cash Flow	-205.95M	-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 Price: 34.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 34.19 is below the 20-day moving average (MA) of 37.62, below the 50-day MA of 35.89, and above the 200-day MA of 32.50, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 34.38 is Neutral, neither overbought nor oversold. The STOCH value of 39.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PINS.

Pinterest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	78 Outperform	$41.31B	186.33	10.11%	―	69.97%	―
PINS	76 Outperform	$23.09B	12.22	48.08%	―	17.00%	901.05%
MTCH	71 Outperform	$8.59B	17.58	-865.98%	1.06%	-0.60%	-11.05%
YELP	70 Outperform	$1.92B	13.79	20.13%	―	5.37%	13.08%
TWLO	61 Neutral	$14.18B	758.95	0.24%	―	11.56%	―
Sector *	60 Neutral	$43.32B	5.10	-7.47%	4.18%	2.51%	-40.18%
SNAP	60 Neutral	$12.15B	―	-26.42%	―	13.18%	54.39%

Pinterest Corporate Events

Pinterest Updates Bylaws and Governance at Annual Meeting

On May 22, 2025, Pinterest, Inc. held its annual meeting of stockholders where several key proposals were voted on, including the election of directors and approval of executive compensation. The Board also approved significant amendments to the company’s bylaws, enhancing procedural requirements for shareholder nominations and updating indemnification procedures. These changes, along with the filing of a Charter Amendment and Restated Certificate of Incorporation, aim to streamline governance and align with Delaware law, potentially impacting shareholder engagement and corporate governance practices.

The most recent analyst rating on (PINS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.