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(NYSE:PINS)
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Rating:67Neutral
Price Target:
$20.50
▲(1.89% Upside)
Action:Downgraded
Date:05/09/26
The score is driven primarily by strong cash generation, high/stable gross margins, and improved profitability, reinforced by an upbeat earnings call with solid growth guidance and AI-led product progress. Offsetting these positives are the balance-sheet shift to higher leverage, decelerating growth/margins versus 2025, a mixed technical picture with price far below the 200DMA, and weak valuation signals due to a negative P/E and no dividend yield.
Positive Factors
Strong free cash flow
Sustained, large free cash flow (roughly $1.2–1.3B) gives Pinterest durable funding for AI infrastructure, product development, buybacks and debt service. High cash conversion reduces reliance on equity raises and provides a multi‑quarter cushion against ad cyclical weakness.
Negative Factors
Higher leverage after financing
Leverage increased materially versus prior years, reducing the previously conservative balance sheet. Higher debt and lower equity limit financial flexibility for strategic deals or ad slowdowns, raise refinancing and covenant sensitivity, and make downside recovery harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained, large free cash flow (roughly $1.2–1.3B) gives Pinterest durable funding for AI infrastructure, product development, buybacks and debt service. High cash conversion reduces reliance on equity raises and provides a multi‑quarter cushion against ad cyclical weakness.
Read all positive factors
Pinterest Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down where Pinterest earns its revenue, highlighting dependence on particular markets, regional growth hotspots, and exposure to currency or regulatory shifts that can affect top-line stability.
Breaks down where Pinterest earns its revenue, highlighting dependence on particular markets, regional growth hotspots, and exposure to currency or regulatory shifts that can affect top-line stability.
Data provided by:
The Fly
The FlyPinterest (PINS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.61B
Dividend YieldN/A
Average Volume (3M)19.09M
Price to Earnings (P/E)46.1
Beta (1Y)1.39
Revenue Growth16.30%
EPS Growth-82.47%
CountryUS
Employees4,778
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.49
Shares Outstanding481,750,300
10 Day Avg. Volume10,363,786
30 Day Avg. Volume19,092,954
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)3.68
Price to Sales (P/S)4.14
P/FCF Ratio13.95
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue3.29
Enterprise Value/Gross Profit4.11
Enterprise Value/Ebitda32.46
Forecast
1Y Price Target
$27.29Price Target Upside35.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
EPS Forecast (FY)1.89
Revenue Forecast (FY)$4.87B
Pinterest Business Overview & Revenue Model
Company Description
Pinterest, Inc. functions globally as a platform dedicated to visual discovery. Its core purpose is to empower individuals to unearth inspiration for various aspects of their lives, encompassing everything from culinary creations and personal styl...
How the Company Makes Money
Pinterest primarily makes money from advertising. Brands and agencies pay to run ads that appear in users’ home feeds, search results, and related recommendation surfaces; these are typically offered through performance and auction-based ad produc...
Pinterest Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong operational and financial signs of momentum — double-digit revenue growth, record MAUs, improving adjusted EBITDA and free cash flow, meaningful AI-driven performance gains, early success from the TV Scientific acquisition, and an aggressive share repurchase — while also acknowledging persistent headwinds from large retailers, ad pricing pressure, near-term cost increases tied to AI/GPU investments and integration of TV Scientific, and short-term international reorganization impacts. On balance the positives (top-line growth, profitability, cash generation, AI-driven product improvements, and successful early advertiser case studies) outweigh the challenges, though management signals work remains to fully monetize engagement globally.Positive Updates
Record Revenue and Strong Top-Line Growth
Q1 revenue of $1.08 billion, up 18% year-over-year (15% constant currency); third consecutive quarter above $1B; Q2 revenue guide $1.133B–$1.153B (14%–16% YoY).
Negative Updates
Continued Headwind from Largest Retailers
Largest retail advertisers remained a headwind to growth in Q1, and while AI-driven optimizations partially offset the impact late in the quarter, the large-retailer dynamic is an ongoing challenge.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q1 revenue of $1.08 billion, up 18% year-over-year (15% constant currency); third consecutive quarter above $1B; Q2 revenue guide $1.133B–$1.153B (14%–16% YoY).
Read all positive updates
Company Guidance
Management guided Q2 2026 revenue of $1.133–$1.153 billion (14–16% YoY) and adjusted EBITDA of $256–$276 million, noting current spot rates imply roughly a one‑point FX tailwind and Q2 non‑GAAP cost of revenue is expected to rise sequentially by mid‑single digits (partly from TV Scientific and added GPU capacity) with seasonally higher Sales & Marketing and sales headcount spend. For context, Q1 results included $1.08 billion revenue (+18% YoY; +15% constant currency), $207 million adjusted EBITDA (20% margin, +40 bps YoY), $312 million free cash flow, 631 million MAUs (+11% YoY: UCAN 106M +4%, Europe 159M +7%, Rest of World 367M +15%), ad impressions +24% and ad pricing −5% YoY, cost of revenue $232 million (+20% YoY) and non‑GAAP operating expense $574 million (+16% YoY). Company activity YTD includes ~$2.0 billion of share repurchases (109 million shares at a weighted average ~$18, ~16% reduction in shares outstanding), $1.3 billion cash and a full‑year adjusted EBITDA margin expectation of ~29% (including ~100 bps drag from TV Scientific) with medium‑term targets of 30–34%.Pinterest Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.37B | 4.22B | 3.65B | 3.06B | 2.80B | 2.58B |
| Gross Profit | 3.49B | 3.38B | 2.90B | 2.37B | 2.12B | 2.05B |
| EBITDA | 442.72M | 471.04M | 308.87M | 5.07M | -24.25M | 357.89M |
| Net Income | 334.35M | 416.86M | 1.86B | -35.61M | -96.05M | 316.44M |
Balance Sheet | ||||||
| Total Assets | 4.65B | 5.51B | 5.34B | 3.59B | 3.86B | 3.54B |
| Cash, Cash Equivalents and Short-Term Investments | 1.30B | 2.47B | 2.51B | 2.51B | 2.70B | 2.48B |
| Total Debt | 1.21B | 262.02M | 185.79M | 196.28M | 228.97M | 250.87M |
| Total Liabilities | 1.79B | 765.69M | 591.51M | 503.73M | 581.08M | 498.50M |
| Stockholders Equity | 2.85B | 4.75B | 4.75B | 3.09B | 3.28B | 3.04B |
Cash Flow | ||||||
| Free Cash Flow | 1.21B | 1.25B | 939.99M | 604.90M | 440.22M | 743.88M |
| Operating Cash Flow | 1.25B | 1.28B | 964.59M | 612.96M | 469.20M | 752.91M |
| Investing Cash Flow | -33.55M | -134.48M | -221.02M | -36.99M | -128.25M | -25.86M |
| Financing Cash Flow | -2.09B | -1.32B | -968.32M | -826.76M | -148.93M | 22.16M |
Pinterest Technical Analysis
Positive
20.12
Price Trends
20.73
Positive
19.66
Positive
23.59
Negative
Market Momentum
0.55
Negative
60.53
Neutral
83.48
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 20.12 is below the 20-day moving average (MA) of 21.17, below the 50-day MA of 20.73, and below the 200-day MA of 23.59, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 83.48 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 45 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $37.60B | 51.83 | 25.48% | ― | 70.64% | 477.34% | |
75 Outperform | $1.42B | 11.57 | 19.70% | ― | 2.09% | 4.03% | |
67 Neutral | $12.61B | 46.08 | 7.76% | ― | 16.30% | -82.47% | |
65 Neutral | $7.43B | 53.40 | 8.04% | ― | 11.20% | ― | |
63 Neutral | $9.06B | 14.15 | -286.13% | 2.32% | 2.00% | 30.81% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $7.76B | -19.03 | -18.93% | ― | 10.26% | 23.77% |
* Communication Services Sector Average
PINS
Pinterest
22.52
-13.46
-37.41%
YELP
Yelp
25.81
-8.70
-25.21%
SNAP
Snap
4.68
-4.86
-50.94%
BILI
Bilibili
17.70
-4.62
-20.70%
MTCH
Match Group
38.85
7.33
23.26%
RDDT
Reddit Inc Class A
195.34
48.96
33.45%
Pinterest Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Pinterest CFO Assumes Accounting Role Amid Strong Q1
Positive
May 4, 2026
Pinterest reported first-quarter 2026 results on May 4, 2026, posting revenue of $1.01 billion, up 18% year over year, and reaching a record 631 million global monthly active users, an 11% increase that marked its tenth straight quarter of double-...
Private Placements and Financing
Pinterest Raises $1 Billion via Convertible Notes Financing
Positive
Mar 5, 2026
On March 3, 2026, Pinterest, Inc. entered into an investment agreement with Elliott Associates, L.P. and Elliott International, L.P. for the sale of $1 billion of 1.75% Convertible Senior Notes due 2031, and the transaction closed on March 5, 2026...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Pinterest seals Elliott investment deal and buyback expansion
Positive
Mar 3, 2026
On March 3, 2026, Pinterest entered into an investment agreement with Elliott Investment Management for a $1 billion purchase of 1.75% convertible senior notes due 2031, with an initial conversion price of about $22.72 per share, a 30% premium to ...
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.