Pinterest (PINS) AI Stock Analysis

• Market Cap: $17.42B
• Dividend Yield: N/A
• Average Volume (3M): 14.88M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.45
• 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): 0.38
• Shares Outstanding: 595,837,770
• 10 Day Avg. Volume: 16,384,059
• 30 Day Avg. Volume: 14,875,382
• 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: 1.14
• Enterprise Value/Revenue: 4.90
• Enterprise Value/Gross Profit: 6.13
• Enterprise Value/Ebitda: 54.80
• 1Y Price Target: $38.90
• Price Target Upside: 48.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 1.69
• Revenue Forecast (FY): $4.23B

• Rating: 77 Outperform
• Price Target: $31.00 ▲(18.14% Upside)

Pinterest's overall stock score reflects strong financial performance and positive earnings call insights, which are the most significant factors. The technical analysis presents some caution due to bearish trends, while the valuation suggests the stock is undervalued. The strategic focus on AI and international growth supports a positive outlook.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective monetization strategies, supporting long-term financial health.

International Expansion

Strong international growth diversifies revenue streams and reduces reliance on domestic markets, enhancing global competitiveness.

AI-Powered Features

AI innovations improve user engagement and platform functionality, driving long-term user growth and advertiser interest.

Negative Factors

Challenges in UCAN Region

Economic pressures in key regions may hinder revenue growth, affecting overall financial performance and strategic focus.

Decline in Ad Pricing

Falling ad prices could pressure margins and profitability, challenging the sustainability of revenue growth.

Operational Efficiency

Lower operational margins suggest inefficiencies that could limit profitability and require strategic improvements.

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

Pinterest demonstrates strong financial health with consistent revenue growth, high profitability, and effective cash flow management. The company maintains low leverage, enhancing financial stability. However, there is room for improvement in operational margins.

Income Statement

Pinterest has demonstrated strong revenue growth with a 3.86% increase in TTM, alongside a robust gross profit margin of 79.99%. The net profit margin is impressive at 48.99%, indicating high profitability. However, the EBIT and EBITDA margins are relatively lower at 8.32% and 8.94%, 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 0.04, indicating low leverage. The return on equity is strong at 44.93%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which could provide further insights into asset financing.

Cash Flow

Pinterest exhibits healthy cash flow metrics with a free cash flow growth rate of 7.10% in TTM and a strong operating cash flow to net income ratio of 2.69. The free cash flow to net income ratio is also robust at 0.98, indicating effective cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	3.65B	3.06B	2.80B	2.58B	1.69B
Gross Profit	3.24B	2.90B	2.37B	2.12B	2.05B	1.24B
EBITDA	362.72M	201.08M	-104.17M	-55.19M	353.69M	-89.40M
Net Income	1.99B	1.86B	-35.61M	-96.05M	316.44M	-128.32M
Balance Sheet
Total Assets	5.52B	5.34B	3.59B	3.86B	3.54B	2.61B
Cash, Cash Equivalents and Short-Term Investments	2.67B	2.51B	2.51B	2.70B	2.48B	1.76B
Total Debt	410.47M	185.79M	196.28M	228.97M	250.87M	182.95M
Total Liabilities	690.44M	591.51M	503.73M	581.08M	498.50M	367.09M
Stockholders Equity	4.82B	4.75B	3.09B	3.28B	3.04B	2.24B
Cash Flow
Free Cash Flow	1.12B	939.99M	604.90M	440.22M	743.88M	11.43M
Operating Cash Flow	1.15B	964.59M	612.96M	469.20M	752.91M	28.83M
Investing Cash Flow	-136.42M	-221.02M	-36.99M	-128.25M	-25.86M	-47.62M
Financing Cash Flow	-914.29M	-968.32M	-826.76M	-148.93M	22.16M	19.64M

Pinterest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.24
• 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 Negative. The current price of 26.24 is below the 20-day moving average (MA) of 26.28, below the 50-day MA of 28.86, and below the 200-day MA of 32.10, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 20.74 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
PINS	77 Outperform	$17.42B	8.97	51.49%	―	16.79%	819.94%
RDDT	75 Outperform	$43.08B	127.42	15.22%	―	69.71%	―
YELP	70 Outperform	$1.90B	13.70	20.37%	―	5.35%	33.74%
MTCH	66 Neutral	$7.67B	15.13	―	2.34%	-0.46%	-2.75%
SNAP	63 Neutral	$12.90B	-25.88	-22.38%	―	11.75%	49.19%
BILI	62 Neutral	$10.20B	96.30	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Pinterest Corporate Events

Pinterest Appoints Emily Reuter to Board of Directors

On September 16, 2025, Jeremy Levine, an independent member of Pinterest‘s Board of Directors, announced his retirement effective September 18, 2025. His departure was amicable and not due to any disagreements with the company. Subsequently, Emily Reuter, CFO of Instacart, was appointed to the Board as a Class I director. Reuter’s extensive experience in technology and e-commerce, including roles at Instacart and Uber, aligns with Pinterest’s strategy to become a leader in AI-powered shopping. Her appointment is expected to support Pinterest’s growth and innovation efforts as it expands its global reach.