Pinterest Inc.
PINS
$22.52
-0.79%
Pinterest operates a visual discovery and social media platform focused on product and idea discovery, generating revenue primarily through digital advertising. As a niche player in the social media landscape with over 500 million monthly active users, it differentiates itself through its unique focus on inspiration and shopping intent, particularly among a predominantly female user base. The current investor narrative centers on a potential turnaround driven by accelerating user growth in North America, tangible benefits from AI investments, and strategic moves like the tvScientific acquisition to expand into connected TV advertising, though recent post-earnings volatility has sparked debate about the sustainability of its growth trajectory.…
PINS
Pinterest Inc.
$22.52
Related headlines
PINS 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Pinterest Inc.'s 12-month outlook, with a consensus price target around $29.28 and implied upside of +30.0% versus the current price.
Average Target
$29.28
9 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
9
covering this stock
Price Range
$18 - $29
Analyst target range
With 9 analysts covering Pinterest, the consensus leans neutral-to-bullish, though recent downgrades have tempered sentiment. The average EPS estimate for the current fiscal year is $3.19, with a low of $3.06 and high of $3.31, implying strong earnings growth from the trailing twelve months. Revenue estimates average $7.18 billion, representing approximately 36% growth from the prior year. The consensus recommendation is a Hold, with a mix of Buy, Overweight, and Neutral ratings, but recent actions include downgrades from BofA, Citigroup, and Loop Capital following the Q4 2025 earnings, reflecting caution on near-term execution. The average price target is not explicitly provided, but based on the forward P/E of 10.1x and EPS estimates, the implied target is approximately $32.20, suggesting 43% upside from the current price of $22.52. The target range spans from a low of $30.90 (based on low EPS of $3.06 at 10.1x P/E) to a high of $33.40 (high EPS of $3.31 at 10.1x P/E), a relatively tight spread of 8%, indicating strong conviction among analysts. The high target assumes successful execution of AI-driven ad improvements and continued user growth, while the low target prices in potential macro headwinds or competitive pressure from larger platforms. Recent downgrades suggest some analysts see limited near-term upside, but the overall consensus still implies significant upside if earnings materialize as expected.
PINS Technical Analysis
Pinterest is in a recovery phase from a deep downtrend, with the stock down 37.1% over the past year but up 27.8% over the last three months. The current price of $22.52 sits at 33.6% of its 52-week range ($13.84-$39.93), indicating it is closer to the low end but has rebounded significantly from the February low of $15.42. This positioning suggests the stock is in a nascent recovery but still well below its highs, offering potential upside if momentum continues. Short-term momentum is accelerating, with a 1-month gain of 3.4% and a 3-month gain of 27.8%, contrasting sharply with the 1-year decline of 37.1%. This divergence signals a potential trend reversal, as the stock has broken its multi-month downtrend and is building higher lows since the February trough. The relative strength versus the S&P 500 has turned positive over 3 months (+16.7%) but remains deeply negative over 1 year (-57.7%), confirming the nascent nature of the recovery. The 52-week low of $13.84 provides strong support, while the 52-week high of $39.93 represents key resistance. A breakout above $39.93 would signal a full trend reversal, while a breakdown below $13.84 would indicate renewed downside risk. With a beta of 0.887, Pinterest is slightly less volatile than the broader market, meaning its price swings are somewhat muted relative to the S&P 500, which is favorable for risk management in a recovery scenario.
Beta
0.89
0.89x market volatility
Max Drawdown
-60.6%
Largest decline past year
52-Week Range
$14-$40
Price range past year
Annual Return
-37.1%
Cumulative gain past year
| Period | PINS Return | S&P 500 |
|---|---|---|
| 1m | +3.4% | +1.8% |
| 3m | +27.8% | +10.0% |
| 6m | -17.0% | +8.8% |
| 1y | -37.1% | +21.1% |
| ytd | -15.2% | +10.7% |
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PINS Fundamental Analysis
Revenue growth is accelerating, with Q4 2025 revenue of $1.319 billion growing 14.3% year-over-year, up from 10.5% growth in Q3 2025 and 8.5% in Q2 2025. The sequential acceleration from $854.9 million in Q1 2025 to $1.319 billion in Q4 2025 demonstrates strong momentum, driven by North American user growth and AI-enhanced ad targeting. The full-year revenue trajectory suggests Pinterest is successfully monetizing its user base, with the tvScientific acquisition expected to further boost connected TV ad revenue. Profitability has improved markedly, with net income of $277.1 million in Q4 2025 versus $38.8 million in Q2 2025, and gross margin expanding to 82.8% from 79.7% a year earlier. The net margin of 21.0% in Q4 2025 is well above the industry average for social media platforms, reflecting operating leverage from higher revenue and disciplined cost management. Operating income swung from a loss of $35.5 million in Q1 2025 to a profit of $301.2 million in Q4 2025, demonstrating a clear path to sustained profitability. Pinterest has a fortress balance sheet with $975.4 million in cash, zero debt, and a debt-to-equity ratio of just 0.055. Free cash flow generation is robust, with $1.252 billion in trailing twelve-month free cash flow, providing ample liquidity for strategic investments and share buybacks. The company repurchased $586.7 million in stock in Q4 2025 alone, signaling management's confidence in the business. With a current ratio of 7.64, Pinterest has more than sufficient short-term liquidity to fund operations and growth initiatives without external financing.
Quarterly Revenue
$1.3B
2025-12
Revenue YoY Growth
+14.32%
YoY Comparison
Gross Margin
82.80%
Latest Quarter
Free Cash Flow
$1.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is PINS Overvalued?
Since net income is positive, the trailing P/E ratio of 41.8x is the primary valuation metric, though the forward P/E of 10.1x indicates the market expects significant earnings growth. The wide gap between trailing and forward P/E implies that analysts anticipate a sharp increase in earnings, likely driven by margin expansion and revenue growth. The PEG ratio of -0.54 is negative due to negative earnings growth in the trailing period, but the forward P/E suggests a compelling earnings story. Compared to the Internet Content & Information industry average P/E of approximately 25x, Pinterest's trailing P/E of 41.8x represents a 67% premium, reflecting its higher growth rate and expanding margins. However, the forward P/E of 10.1x is a 60% discount to the industry forward average of 25x, suggesting the market has not fully priced in the expected earnings acceleration. This dichotomy indicates that if Pinterest delivers on earnings expectations, the stock could re-rate higher. Historically, Pinterest's trailing P/E has ranged from 2.6x (Q4 2024, due to a one-time tax benefit) to over 800x (Q2 2024), with the current 41.8x near the lower end of its historical range excluding outliers. The price-to-sales ratio of 4.14x is below the 5-year average of 25x, suggesting the stock is cheap on a sales basis relative to its history. This low PS ratio, combined with the forward P/E discount, implies that the market is pricing in conservative expectations, offering a potential value opportunity if growth materializes.
PE
41.8x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -765x~828x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
35.6x
Enterprise Value Multiple