Pinterest (PINS) AI Stock Analysis

• Market Cap: $14.95B
• Dividend Yield: N/A
• Average Volume (3M): 14.40M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.42
• 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: 16,940,195
• 30 Day Avg. Volume: 14,396,915
• 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: 0.96
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 39.49
• 1Y Price Target: $36.16
• Price Target Upside: 63.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $27.00 ▲(22.01% Upside)

The score is driven primarily by strong financial performance (profitability, cash generation, and low leverage) and an attractive P/E valuation. Offsetting factors are weak technical momentum (below key moving averages with negative MACD) and some execution risk highlighted by ad pricing pressure, UCAN softness, and near-term disruption from restructuring.

Positive Factors

High Gross & Net Margins

Sustained high gross and net margins provide structural profitability that funds product development and strategic investments. Durable margin cushions help absorb advertising volatility and support long-term reinvestment without immediate reliance on external financing.

Strong Cash Generation

Consistent operating cash conversion and positive FCF growth create durable financial flexibility. Reliable cash generation enables sustained R&D, platform improvements, and selective reinvestment in AI and monetization initiatives while limiting dependence on new capital.

Large & Growing User Base with AI Traction

Record MAUs and rising visual search plus new AI features indicate structural user engagement and product differentiation. Large Gen Z skew and improved discovery tools support lasting advertiser interest and cross-border monetization potential as product-led growth continues.

Negative Factors

Modest Operating Margins

Relatively low operating margins limit the company's ability to convert high gross profit into sustainable operating leverage. This structural constraint reduces buffer against ad-revenue shocks and constrains long-term margins despite strong net profitability driven by other accounting items.

Ad Pricing Decline and Mix Shift

A durable shift toward international and previously undermonetized impressions that lowers ad pricing can suppress revenue per engagement over multiple quarters. Structural mix changes raise the bar for monetization execution and require sustained product and sales investment to restore price levels.

Restructuring & Workforce Reductions

Board-approved layoffs and office cuts aimed at reallocating to AI create execution and morale risk. While intended to improve long-term focus, near-term disruption to sales, ops, and product teams can slow monetization and integration of AI capabilities over the medium term.

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: high gross margin (79.99%) and very strong net margin (48.99%), healthy cash conversion (operating cash flow to net income 2.69) and FCF growth (7.10%), plus very low leverage (debt-to-equity 0.04). A key constraint is comparatively modest operating profitability (EBIT/EBITDA margins ~8–9%).

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: 22.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 22.13 is below the 20-day moving average (MA) of 25.70, below the 50-day MA of 25.99, and below the 200-day MA of 31.43, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 26.13 is Positive, neither overbought nor oversold. The STOCH value of 6.04 is Positive, 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	78 Outperform	$14.95B	7.67	51.49%	―	16.79%	819.94%
YELP	77 Outperform	$1.68B	12.08	20.37%	―	5.35%	33.74%
RDDT	72 Outperform	$34.16B	99.29	15.22%	―	69.71%	―
MTCH	66 Neutral	$7.35B	14.50	―	2.32%	-0.46%	-2.75%
BILI	65 Neutral	$14.53B	132.71	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SNAP	55 Neutral	$11.92B	―	-22.38%	―	11.75%	49.19%

Pinterest Corporate Events

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.