Pinterest has the potential to significantly grow both revenue and profitability over the next five years, driven by product innovation, improving monetization, and growing advertiser interest in high-intent audiences. Key catalysts include the deepening partnership with Amazon, the rollout of advanced ad tools and video formats, and international ARPU growth.
By 2029, Pinterest's revenue is projected to grow from ~$3.1 billion to $5.5–7.2 billion, with net profit margins expanding from ~10% to 17–21%, reflecting greater operating leverage and ad efficiency. This could result in EPS rising to $2.00–3.10, depending on execution and market conditions.
Valuation multiples are expected to normalize in the range of 25–35x P/E by 2029, depending on growth quality and market sentiment. Based on these assumptions, Pinterest’s stock could reach:
- $93–109 in a bull case (27% CAGR),
- $68–83 in a base case (15–19% CAGR),
- or $36–44 in a bear case (~0–5% CAGR).
Even in the conservative scenario, downside is limited by Pinterest’s positive cash flow, low debt, and continued user engagement. In the upside case, Pinterest could emerge as a leader in visual discovery and commerce — making it a compelling, asymmetric investment opportunity.
In the base case, Pinterest is expected to grow revenue by around 11–12% annually, primarily driven by improved ad monetization, Amazon integration, and stronger international ARPU. In a bull case, revenue growth could reach 14–16% CAGR, with continued expansion of its product and ad ecosystem.
In terms of profitability, Pinterest’s net margins are projected to expand from ~10% today to 17–18% in the base case and up to 20–21% in a bull case. Margin expansion will be fueled by improved ad pricing, operating leverage, automation, and a lean cost structure.
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Disclaimer
The user Broke_Joe holds no position in NYSE:PINS. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
