Update shared on04 Sep 2025
Fair value Increased 0.19%Despite accelerating revenue and user growth driven by Gen-Z momentum, AI-powered ad products, and increased advertiser spend shifting from TikTok, the consensus analyst price target for Pinterest remained unchanged at $43.04.
Analyst Commentary
- Revenue and monthly active user growth is accelerating, with Gen-Z now comprising over half of Pinterest’s user base.
- Bullish analysts highlight strong Q2 results, with solid advertiser and user momentum.
- Growing adoption of new AI-powered offerings and tools (such as Performance+ Creative and Bidding) is driving monetization improvements and advertiser spend growth.
- Advertisers are shifting spending from TikTok to Pinterest, benefiting Pinterest’s overall ad revenue.
- Improvements in ad efficiency and performance-driven growth are expected to enhance earnings power in the second half of 2025.
What's in the News
- BMO Capital raised Pinterest's price target to $41 (from $40) and maintained an Outperform rating, citing solid Q2 results, increasing AI-powered offerings, and Gen-Z now comprising over half the user base (BMO Capital, 2025-08-08).
- Pinterest’s platform is seeing a surge of AI-generated interior design images, leading to concerns about realism and user experience complications (Financial Times, 2025-07-25).
- Pinterest continues to be listed among key public competitors in the social media sector, particularly as regulation and competitive pressure mount around issues like fake news, data, and moderation (Reuters, Bloomberg, WSJ, NYT, 2025).
- Social media rivals, including Pinterest, are affected by heightened regulatory scrutiny globally, with peers facing legal and compliance challenges around content moderation and taxation (Reuters, Bloomberg, 2025).
- The evolving landscape of social media ownership and regulation (e.g., TikTok's potential sale, enforcement delays) has implications for Pinterest's competitive environment and user engagement (Reuters, WSJ, 2025).
Valuation Changes
Summary of Valuation Changes for Pinterest
- The Consensus Analyst Price Target remained effectively unchanged, at $43.04.
- The Discount Rate for Pinterest remained effectively unchanged, at 8.00%.
- The Consensus Revenue Growth forecasts for Pinterest remained effectively unchanged, at 14.5% per annum.
Disclaimer
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