Pinterest (PINS) AI Stock Analysis

• Market Cap: $11.39B
• Dividend Yield: N/A
• Average Volume (3M): 20.52M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.53
• 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): 0.67
• Shares Outstanding: 585,458,700
• 10 Day Avg. Volume: 22,445,934
• 30 Day Avg. Volume: 20,520,982
• PEG Ratio: -0.54
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 13.95
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 27.59
• 1Y Price Target: $24.11
• Price Target Upside: 40.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 32
• EPS Forecast (FY): 1.74
• Revenue Forecast (FY): $4.75B

• Rating: 66 Neutral
• Price Target: $17.00 ▼(-0.76% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is supported primarily by strong financial quality (high margins, low leverage, and robust free cash flow) and a constructive earnings outlook with maintained margin targets. It is held back by very weak technicals (sharp downtrend and depressed price vs key moving averages) and near-term monetization risks cited on the call (ad pricing decline, retailer pullbacks, and sales/GTM transition).

Positive Factors

High Gross Margins

Sustained ~75–80% gross margins indicate strong unit economics and pricing power in ad and commerce formats. High margin structure provides durable operating leverage, allowing reinvestment in AI, product and sales while cushioning revenue cyclicality tied to ad pricing or retail pauses.

Strong Cash Generation & Liquidity

Robust free cash flow and a $2.5B cash stockpile give Pinterest flexibility to fund AI infrastructure, product investments and strategic M&A without material leverage. High cash conversion supports buybacks and restructuring while reducing financing risk during ad-cycle volatility.

User Growth & Engagement Momentum

Consistent MAU growth and rising engagement (searches, saves, clicks) underpin a durable commercial opportunity. High commercial-intent searches and AI-driven product gains deepen advertiser ROI potential, supporting longer-term ad monetization once sales execution catches up.

Negative Factors

Ad Pricing Pressure

A 19% decline in ad pricing signals meaningful monetization pressure from mix shifts to under-monetized markets and advertiser pullbacks. Persistent pricing weakness could slow revenue per user recovery and make top-line growth more reliant on volume and improved sales execution.

Sales & GTM Transformation Risk

A multi-quarter reorganization of sales and GTM creates execution risk: revenue cycles and new-client ramps can lag, especially for SMB and international expansion. If sales productivity falters, engagement gains may not translate to sustained advertiser monetization for several quarters.

Margin Headwinds from AI & Acquisition

Near-term investments in GPU/AI capacity and integration costs (plus a modest EBITDA drag from the tvScientific acquisition) exert pressure on margins. These structural investments are strategic, but they reduce near-term margin headroom and require sustained revenue improvement to offset the cost base.

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

Strong overall fundamentals supported by very high and stable gross margins (~75–80%), a low-leverage balance sheet (debt-to-equity ~0.04–0.08), and strong/free cash flow generation that scaled materially through 2025. Offsetting factors are moderating revenue growth and volatility in net margins from 2022–2025, indicating profitability is not yet consistently predictable.

Income Statement

Revenue has grown steadily over time (strong growth in 2020–2021, then moderating through 2023–2025), while gross margins remain very high and stable around ~75–80%, indicating strong unit economics. Profitability is improving from losses in 2022–2023 to positive earnings in 2025, but operating profitability is still relatively modest versus the revenue base (mid-single-digit EBITDA margin in 2024–2025). A key weakness is earnings volatility—net margin swung from negative (2022–2023) to unusually high in 2024 and then normalized in 2025—suggesting results are not yet consistently predictable.

Balance Sheet

The balance sheet looks conservatively financed, with very low leverage (debt-to-equity consistently ~0.04–0.08) and equity building over time alongside asset growth. Returns on equity improved meaningfully with the return to profitability (strong in 2024 and positive in 2025), though it was negative during 2022–2023, reflecting prior earnings pressure. Overall risk from debt appears limited, with the main balance-sheet sensitivity being to profitability cycles rather than leverage.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow have scaled materially from 2020 to 2025, and free cash flow closely tracks reported earnings in recent years, supporting earnings quality. Free cash flow growth is strong in the latest annual period (2025), following more moderate growth in 2024 and a decline in 2022, so the trajectory is positive but not perfectly smooth. Overall, the company demonstrates strong cash conversion and ample internally generated liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.22B	3.65B	3.06B	2.80B	2.58B
Gross Profit	3.38B	2.90B	2.37B	2.12B	2.05B
EBITDA	345.03M	201.08M	-104.17M	-55.19M	353.69M
Net Income	416.86M	1.86B	-35.61M	-96.05M	316.44M
Balance Sheet
Total Assets	5.51B	5.34B	3.59B	3.86B	3.54B
Cash, Cash Equivalents and Short-Term Investments	2.47B	2.51B	2.51B	2.70B	2.48B
Total Debt	262.02M	185.79M	196.28M	228.97M	250.87M
Total Liabilities	765.69M	591.51M	503.73M	581.08M	498.50M
Stockholders Equity	4.75B	4.75B	3.09B	3.28B	3.04B
Cash Flow
Free Cash Flow	1.25B	939.99M	604.90M	440.22M	743.88M
Operating Cash Flow	1.28B	964.59M	612.96M	469.20M	752.91M
Investing Cash Flow	-134.48M	-221.02M	-36.99M	-128.25M	-25.86M
Financing Cash Flow	-1.32B	-968.32M	-826.76M	-148.93M	22.16M

Pinterest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.13
• 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 17.13 is below the 20-day moving average (MA) of 18.49, below the 50-day MA of 22.96, and below the 200-day MA of 30.65, indicating a bearish trend. The MACD of -1.80 indicates Negative momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 75.88 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	72 Outperform	$27.85B	54.78	20.94%	―	69.71%	―
YELP	71 Outperform	$1.37B	9.88	20.02%	―	5.35%	33.74%
MTCH	67 Neutral	$7.35B	13.30	―	2.32%	-0.46%	-2.75%
PINS	66 Neutral	$11.39B	28.05	8.78%	―	16.79%	819.94%
BILI	65 Neutral	$11.76B	108.77	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SNAP	55 Neutral	$8.80B	-19.03	-19.46%	―	11.75%	49.19%

Pinterest Corporate Events

Pinterest Closes tvScientific Acquisition, Raises Q1 2026 Outlook

On February 17, 2026, Pinterest, Inc. closed its previously announced acquisition of tvScientific, Inc., integrating the acquired business into its operations and financial reporting. Following the completion of this transaction, Pinterest updated its first-quarter 2026 guidance to forecast revenue between $958 million and $978 million and Adjusted EBITDA between $163 million and $183 million, reflecting the expected partial-quarter contribution from tvScientific to the company’s consolidated results and signaling a modest uplift to near-term financial performance.

The company noted that it is not providing a forward-looking GAAP reconciliation for Adjusted EBITDA because of uncertainties around items such as share-based compensation and income taxes, which could materially affect future GAAP outcomes. This approach underscores both the complexity of forecasting post-acquisition financial impacts and the potential variability in reported earnings measures that investors will need to factor into their assessment of Pinterest’s profitability and integration progress.

The most recent analyst rating on (PINS) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Adds Ulta CEO Kecia Steelman to Board

Pinterest has appointed Kecia Steelman, President and Chief Executive Officer of Ulta Beauty, to its board of directors as a Class II independent director, effective February 16, 2026, and she will also join the Talent Development and Compensation Committee. The February 9, 2026 announcement underscores Pinterest’s strategy to strengthen its board with veteran retail and omnichannel expertise as it advances its ambitions to be a leading visual discovery and AI-powered shopping platform for users, brands and advertisers.

Steelman brings more than 30 years of experience leading large-scale retail businesses, including senior roles at Ulta Beauty, Family Dollar Stores, Home Depot and Target, and she currently serves on several other boards. Her appointment is expected to support Pinterest’s next phase of growth by deepening its connections with brands and enhancing its position as a go-to shopping and performance ad platform, potentially benefiting stakeholders across the company’s global commerce and advertising ecosystem.

The most recent analyst rating on (PINS) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Launches Global AI-Focused Workforce Restructuring Plan

On January 26, 2026, Pinterest announced a board-approved global restructuring plan that will reduce less than 15% of its workforce and shrink office space, with expected pre-tax restructuring charges of approximately $35 million to $45 million, largely in cash, to be excluded from its non-GAAP metrics such as Adjusted EBITDA. The plan, expected to be completed by the end of the third quarter of 2026, is designed to accelerate the company’s transformation by reallocating resources to AI-focused roles, prioritizing AI-powered products and capabilities, and revamping its sales and go-to-market approach, while simultaneously reinvesting in key development areas and strategic opportunities despite near-term headcount reductions.

The most recent analyst rating on (PINS) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.

Pinterest Names Claude Brown as New Chief Business Officer

On January 20, 2026, Pinterest appointed Claude (Lee) Brown as Chief Business Officer, tasking him with oversight of the company’s global sales, content, customer-facing operations, and advertising product marketing. Brown brings extensive digital advertising and revenue-leadership experience from prior roles as Chief Revenue Officer at DoorDash and BuzzFeed, and as Vice President, Global Head of Advertising at Spotify, along with senior positions at Tumblr, Groupon, and Yahoo, a background that is expected to strengthen Pinterest’s commercial strategy and bolster its competitive position in the online advertising market.

The most recent analyst rating on (PINS) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Pinterest stock, see the PINS Stock Forecast page.