Pinterest (PINS) AI Stock Analysis

• Market Cap: $25.24B
• Dividend Yield: N/A
• Average Volume (3M): 10.02M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.53
• Revenue Growth: 17.00%
• EPS Growth: 901.05%
• Country: US
• Employees: 4,778
• Sector: Communication Services
• Sector Strength: 96
• Industry: Internet Content & Information
• EPS (TTM): 0.33
• Shares Outstanding: 599,264,160
• 10 Day Avg. Volume: 6,578,705
• 30 Day Avg. Volume: 10,021,321
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 5.69
• Enterprise Value/Gross Profit: 7.12
• Enterprise Value/Ebitda: 92.84
• 1Y Price Target: $43.93
• Price Target Upside: 18.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29

• Rating: 79 Outperform
• Price Target: $41.00 ▲(10.45% Upside)

Pinterest's overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust user growth and international revenue expansion. While technical analysis indicates some short-term weakness, the company's reasonable valuation and strategic focus on AI and international markets support a favorable long-term outlook.

Positive Factors

Revenue Guidance

Digital ad demand remains strong, with the company exceeding the high end of its guidance range and guiding Q3 revenue above pre-report estimates.

User Engagement

User engagement continues to see positive momentum among Gen Z, with increasingly visual- and AI-enhanced search features driving strong user behavior.

Negative Factors

EBITDA Guidance

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

Revenue Growth

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

Pinterest Business Overview & Revenue Model

Company Description

Pinterest (PINS) is a visual discovery and bookmarking platform that allows users to discover, save, and share ideas through images and videos. Founded in 2010, Pinterest operates primarily in the social media and digital advertising sectors, providing a space for users to explore various categories such as home decor, fashion, food, and DIY projects. The platform enables users to create personalized boards for organizing their favorite pins, which can be sourced from both the internet and other users. Pinterest aims to inspire creativity and facilitate planning for events, projects, and personal interests.

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 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

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

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

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: Positive
• Last Price: 37.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PINS, the sentiment is Positive. The current price of 37.12 is above the 20-day moving average (MA) of 35.96, above the 50-day MA of 36.62, and above the 200-day MA of 32.90, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 88.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PINS.

Pinterest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	79 Outperform	$25.24B	13.27	48.08%	―	17.00%	901.05%
OPRA	75 Outperform	$1.44B	19.96	8.57%	4.38%	29.62%	-19.65%
RDDT	73 Outperform	$43.44B	195.92	10.11%	―	69.97%	―
YELP	70 Outperform	$2.00B	14.34	20.13%	―	5.37%	13.08%
MTCH	68 Neutral	$9.00B	18.51	-865.98%	1.02%	-0.60%	-11.05%
Sector *	60 Neutral	$46.29B	4.07	-13.12%	4.12%	1.85%	-42.71%
SNAP	59 Neutral	$11.98B	―	-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.