Pinterest (PINS) AI Stock Analysis

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(NYSE:PINS)

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Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$31.00

▲(12.77% 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 (PINS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$18.29B

Dividend YieldN/A

Average Volume (3M)13.90M

Price to Earnings (P/E)9.5

Beta (1Y)1.42

Revenue Growth16.79%

EPS Growth819.94%

CountryUS

Employees4,778

SectorCommunication Services

Sector Strength97

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.38

Shares Outstanding595,837,770

10 Day Avg. Volume8,115,242

30 Day Avg. Volume13,897,234

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)4.14

Price to Sales (P/S)5.40

P/FCF Ratio20.94

Enterprise Value/Market Cap1.09

Enterprise Value/Revenue4.90

Enterprise Value/Gross Profit6.13

Enterprise Value/Ebitda54.80

Forecast

1Y Price Target

$38.41

Price Target Upside39.72% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering24

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Pinterest Business Overview & Revenue Model

Company DescriptionPinterest, 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 MoneyPinterest 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 Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, showing where Pinterest is strongest and where it may face risk or growth opportunities due to local market dynamics.

Chart InsightsPinterest's revenue growth is primarily driven by the US and Canada, with Europe showing significant momentum. The Rest of World segment is expanding rapidly, supported by international expansion and reseller efforts, as highlighted in the earnings call. Despite challenges like declining ad pricing due to international mix shifts, Pinterest's strategic focus on AI and visual search is enhancing advertiser performance and user engagement, contributing to strong revenue growth. The company expects continued growth, with Q2 revenue guidance indicating a 12% to 15% increase, underscoring its resilience amid macroeconomic uncertainties.

Data provided by:

The Fly

Pinterest Earnings Call Summary

Earnings Call Date:Nov 04, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 05, 2026

Earnings Call Sentiment Positive

The earnings call presented a strong quarter for Pinterest, showcasing significant growth in users and revenue, particularly in international markets. However, there were challenges in the UCAN region due to external economic factors and a decline in ad pricing. Overall, the company's strategic investments in AI and performance ad platforms are driving positive engagement and financial health.

Q3-2025 Updates

Positive Updates

Record Growth in Monthly Active Users

Pinterest reached 600 million monthly active users in Q3 2025, marking the ninth consecutive quarter of record high users. Gen Z is the largest and fastest-growing cohort, comprising over 50% of the user base.

Significant Revenue Growth

Q3 2025 revenue grew 17% year-over-year to $1.049 billion, demonstrating strong financial performance and proving Pinterest's role as a trusted partner to brands and agencies globally.

International Revenue Expansion

International revenue grew significantly, with Europe revenue at $193 million (41% growth) and Rest of World at $70 million (66% growth), illustrating successful export of lower funnel playbook.

Impressive AI-Powered Features

Pinterest launched new AI-powered features like Pinterest Assistant and multimodal search, enhancing the user experience and increasing engagement. Visual search queries grew 44% year-over-year.

Strong Financial Health and Cash Flow

The company reported an adjusted EBITDA of $306 million, with a margin of 29% and free cash flow of $318 million, highlighting the profitability and cash-generative nature of the business.

Negative Updates

Challenges in UCAN Region

Pockets of moderating ad spend in the U.S. and Canada due to larger U.S. retailers navigating tariff-related margin pressure, impacting overall growth in the region.

Decline in Ad Pricing

Ad pricing declined 24% year-over-year, primarily due to the growing mix shift from ad impressions in previously unmonetized or undermonetized international markets.

Company Guidance

During Pinterest's third quarter 2025 earnings call, the company provided several key metrics and insights into their performance and future guidance. Pinterest reported a 17% year-over-year revenue growth, reaching $1.049 billion for the quarter, driven by strong execution of their AI-powered shopping platform. The company achieved a record 600 million monthly active users, with Gen Z comprising over 50% of its user base. Pinterest noted that their visual search features saw a 44% year-over-year increase in queries. Additionally, the company highlighted a 40% year-over-year growth in outbound clicks to advertisers, underscoring the effectiveness of their performance ad platform. For the fourth quarter of 2025, Pinterest projected revenue growth of 14% to 16%, with continued investments in AI and product innovation expected to support their long-term financial targets. The company also emphasized international monetization as a significant growth vector, with international markets contributing 25% of global revenue in Q3, reflecting ongoing efforts to capitalize on their large user base outside North America.

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

Neutral

Last Price27.49

Price Trends

50DMA

27.15

Negative

100DMA

30.81

Negative

200DMA

31.71

Negative

Market Momentum

MACD

-0.10

Negative

RSI

50.96

Neutral

STOCH

79.05

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PINS, the sentiment is Neutral. The current price of 27.49 is above the 20-day moving average (MA) of 26.36, above the 50-day MA of 27.15, and below the 200-day MA of 31.71, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 79.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	77 Outperform	$18.29B	9.52	51.49%	―	16.79%	819.94%
YELP	77 Outperform	$1.88B	13.36	20.37%	―	5.35%	33.74%
RDDT	75 Outperform	$48.10B	140.72	15.22%	―	69.71%	―
MTCH	66 Neutral	$7.73B	15.23	―	2.32%	-0.46%	-2.75%
SNAP	63 Neutral	$15.11B	-29.24	-22.38%	―	11.75%	49.19%
BILI	62 Neutral	$11.42B	104.83	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

PINS

26.80

-3.86

-12.59%

YELP

Yelp

30.31

-8.12

-21.13%

SNAP

Snap

8.40

-4.07

-32.64%

BILI

Bilibili

28.64

11.86

70.68%

MTCH

Match Group

32.65

1.52

4.90%

RDDT

Reddit Inc Class A

253.95

86.87

51.99%

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.Date of analysis: Dec 09, 2025