How User Gains, Profitability, and a CTV Push At Pinterest (PINS) Have Changed Its Investment Story

• In recent days, Pinterest highlighted rising Monthly Active Users, strong EBITDA margin of 28.3%, and a free cash flow margin of 27.4%, underscoring improved efficiency and cash generation.
• At the same time, Pinterest’s agreement to acquire CTV platform tvScientific points to an effort to extend its intent-based advertising model into connected TV, potentially broadening how advertisers measure and scale performance campaigns.
• With user growth supporting higher-margin revenue opportunities, we’ll now examine how this progress could reshape Pinterest’s existing investment narrative for investors.

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Pinterest Investment Narrative Recap

To own Pinterest, you need to believe its growing user base and improving margins can translate into durable, high quality advertising and commerce revenue. The recent focus on stronger cash generation and the tvScientific acquisition does not materially change the near term catalyst around better performance ad products, nor does it remove key risks such as pressure on ad pricing and intense competition for ad budgets.

The move to acquire tvScientific stands out because it aims to tie Pinterest’s intent based audience data to connected TV performance campaigns, which directly links to the core catalyst of improving measurement and outcomes for advertisers. How effectively Pinterest integrates CTV into its automation and AI powered tools may influence whether it can deepen relationships with performance marketers and partially offset risks tied to weaker pricing in lower monetizing regions.

Yet even with these promising moves, investors should be aware that growing privacy regulations and data use restrictions could...

Read the full narrative on Pinterest (it's free!)

Pinterest's narrative projects $5.9 billion revenue and $1.0 billion earnings by 2028.

Uncover how Pinterest's forecasts yield a $37.28 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community currently see Pinterest’s fair value between US$32.65 and US$51.27, highlighting a wide spread of individual expectations. You can set these personal valuations against the key catalyst of Pinterest’s push into higher intent, performance focused ad formats, which may influence how its revenue mix and competitive position evolve over time.

Explore 14 other fair value estimates on Pinterest - why the stock might be worth as much as 95% more than the current price!

Build Your Own Pinterest Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pinterest research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Pinterest research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pinterest's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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