Pinterest (PINS) AI Stock Analysis

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(NYSE:PINS)

Rating:77Outperform

Price Target:

$37.00

▲(8.76%Upside)

Pinterest's overall stock score reflects strong financial performance and strategic growth in AI and international markets. Despite technical indicators suggesting overbought conditions, the company's attractive valuation and positive earnings call outlook provide a balanced view. Investors should watch for improvements in operational efficiency and the impact of macroeconomic factors on advertising pricing.

Positive Factors

Advertising Platform

Pinterest has effectively diversified into a full-funnel advertising platform and is capturing a greater share of ad spending among the next tranche of advertisers.

Product Improvements

Recent product improvements, particularly in performance advertising, are contributing to sustained core fundamentals.

Revenue Growth

Analyst expects improved relevancy, deeper engagement, and greater actionability to drive user growth and engagement, supporting mid-high-teens percentage revenue growth over the medium-term.

User Growth

Pinterest is driving solid user growth and deeper engagement by improving platform relevancy and actionability for users.

Negative Factors

Market Positioning

The analyst views the risk/reward on Pinterest as favorable due to solid execution, potential upside to estimates, and lukewarm market positioning.

Valuation

Pinterest shares are currently trading at an undemanding valuation, below the average 2-year forward Adjusted EBITDA multiple.

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

Market Cap

$23.76B

Dividend YieldN/A

Average Volume (3M)13.15M

Price to Earnings (P/E)12.6

Beta (1Y)1.58

Revenue Growth17.81%

EPS Growth1175.52%

CountryUS

Employees4,778

SectorCommunication Services

Sector Strength90

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.23

Shares Outstanding594,233,800

10 Day Avg. Volume9,712,615

30 Day Avg. Volume13,148,505

Financial Highlights & Ratios

PEG Ratio1.31

Price to Book (P/B)4.93

Price to Sales (P/S)0.00

P/FCF Ratio36.72

Enterprise Value/Market Cap0.62

Enterprise Value/Revenue1.04

Enterprise Value/Gross Profit4.94

Enterprise Value/Ebitda21.53

Forecast

1Y Price Target

$39.54

Price Target Upside16.23% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering30

Pinterest Business Overview & Revenue Model

Company DescriptionPinterest, Inc. is a visual discovery engine company based in the United States, operating within the technology and social media sectors. It provides a platform where users can discover, save, and share ideas for various projects and interests, such as recipes, home decor, fashion, and more. The platform allows users to create and manage theme-based image collections known as 'boards' and browse content posted by other users, which is known as 'Pins.'

How the Company Makes MoneyPinterest primarily makes money through advertising revenue, which is generated by selling ad space to businesses looking to reach its user base. The company's key revenue stream is 'Promoted Pins,' which are paid advertisements that appear within the user's feed and search results as native content. Advertisers pay on a cost-per-click or cost-per-impression basis. Pinterest also offers 'Shopping Ads' and 'Catalogs' to facilitate e-commerce by allowing retailers to upload their product catalogs and create dynamic ads. Additionally, Pinterest has developed partnerships with companies like Shopify to enhance its e-commerce capabilities and provide small to medium-sized businesses with tools to reach potential customers more effectively. These partnerships, along with Pinterest's focus on enhancing user engagement and ad targeting capabilities, contribute significantly to its 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:May 08, 2025

(Q1-2025)

% Change Since: 22.11%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

Pinterest demonstrated strong growth in user numbers and revenue, driven by advancements in AI and visual search capabilities. However, challenges remain with declining ad pricing and a fluid macro environment. Despite these challenges, the company's strategic initiatives in AI, international expansion, and product innovation are driving positive outcomes.

Q1-2025 Updates

Positive Updates

Record User Growth

Pinterest reached 570 million MAUs globally, reflecting a 10% growth year-over-year, marking another record number of users.

Strong Revenue Growth

Q1 revenue was $855 million, up 16% year-over-year, demonstrating strong performance for advertisers across the full funnel.

Adjusted EBITDA Growth

Adjusted EBITDA grew to $172 million, with an adjusted EBITDA margin of 20%, an increase of 300 basis points from the previous year.

Advancements in AI and Visual Search

Pinterest's proprietary multimodal AI model is 30% more likely to identify and recommend relevant content than leading off-the-shelf models, enhancing user personalization and engagement.

Performance+ Success

Performance+ outperforms traditional campaigns in 80% of AB tests, driving higher click-through and conversion rates for advertisers.

International Revenue Growth

Revenue from Rest of World grew 49% on a reported basis or 59% on a constant currency basis, driven by international expansion and reseller efforts.

Negative Updates

Decline in Ad Pricing

Ad pricing declined 22% year-over-year due to the international mix shift as Pinterest began to serve ads in previously un-monetized or undermonetized international markets.

Macro Environment Challenges

The macro environment remains uncertain, with some pockets of spend impacted by tariffs, particularly from Asia-based e-commerce retailers in the U.S.

Company Guidance

During Pinterest's first quarter 2025 earnings call, several key metrics and guidance were discussed. Pinterest reported a record number of users, reaching 570 million monthly active users (MAUs), representing a 10% year-over-year growth. The Q1 revenue was $855 million, marking a 16% increase year-over-year. Adjusted EBITDA grew to $172 million, with a focus on profitable growth. The company emphasized leveraging AI to enhance user experience and advertiser performance, resulting in a 4% uplift in click-through rates on ads shown in their related pin surface. Additionally, Pinterest's multimodal AI model, which powers visual search, was noted to be 30% more likely to identify and recommend relevant content compared to leading off-the-shelf models. For the second quarter, Pinterest guided revenue between $960 million and $980 million, indicating a 12% to 15% growth, with an expected adjusted EBITDA ranging from $217 million to $237 million.

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

Very Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
198.76M	179.82M	-125.68M	-101.68M	326.19M	-142.50M
	EBITDA
215.16M	201.08M	-104.17M	-55.19M	353.69M	-89.40M
	Net Income Common Stockholders
1.90B	1.86B	-35.61M	-96.05M	316.44M	-128.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
642.22M	2.51B	2.51B	2.70B	2.48B	1.76B
	Total Assets
1.14B	5.34B	3.59B	3.86B	3.54B	2.61B
	Total Debt
162.36M	185.79M	196.28M	228.97M	209.18M	139.32M
	Net Debt
27.71M	-950.67M	-1.17B	-1.38B	-1.21B	-529.91M
	Total Liabilities
1.78B	591.51M	503.73M	581.08M	498.50M	367.09M
	Stockholders Equity
-633.99M	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

Positive

Last Price34.02

Price Trends

50DMA

29.32

Positive

100DMA

31.91

Positive

200DMA

31.54

Positive

Market Momentum

MACD

1.31

Negative

RSI

63.09

Neutral

STOCH

84.51

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 34.02 is above the 20-day moving average (MA) of 32.69, above the 50-day MA of 29.32, and above the 200-day MA of 31.54, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	77 Outperform	$23.76B	12.62	48.41%	―	17.81%	1175.52%
RDDT	73 Outperform	$21.61B	177.95	5.77%	―	64.12%	―
YELP	71 Outperform	$2.33B	17.23	19.74%	―	5.93%	29.17%
TWLO	69 Neutral	$18.19B	―	-0.39%	―	9.27%	95.03%
MTCH	68 Neutral	$7.77B	15.64	-865.98%	2.41%	0.40%	-11.05%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
SNAP	61 Neutral	$14.19B	―	-23.97%	―	14.91%	59.90%

* Communication Services Sector Average

Performance Comparison

PINS

34.02

-9.49

-21.81%

YELP

Yelp

35.82

-0.45

-1.24%

TWLO

Twilio

115.80

61.56

113.50%

SNAP

Snap

8.30

-7.29

-46.76%

MTCH

Match Group

30.66

-0.52

-1.67%

RDDT

Reddit Inc Class A

116.20

55.26

90.68%

Pinterest Corporate Events

Executive/Board ChangesShareholder MeetingsRegulatory Filings and Compliance

Pinterest Updates Bylaws and Governance at Annual Meeting

Neutral

May 27, 2025

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.

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.