Pinterest (PINS): Assessing Valuation After Recent Share Price Decline

Pinterest (PINS) shares have lagged this month, with returns down 21% over the past month and facing pressure in the past quarter as well. Investors are keeping an eye on the company's growth trajectory as its performance diverges from broader market trends.

See our latest analysis for Pinterest.

Pinterest’s stretch of underperformance stands out not just for this month, but across the past year, with a 1-year total shareholder return of -11.97% and the most recent 30-day share price return down over 21%. While sentiment has cooled, observers are weighing whether the market’s diminished optimism is overdone or simply resetting expectations in light of recent growth numbers and shifting risk perception.

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The question now is whether Pinterest’s recent dip signals an undervalued entry point, or if the latest growth outlooks are already baked into the share price. Could this be a true buying opportunity, or is the market ahead of itself?

Most Popular Narrative: 37.6% Undervalued

With Pinterest last closing at $25.52 and the narrative's calculated fair value at $40.91, the popular narrative puts a hefty premium over recent market levels. This sizable gap comes as analysts incorporate both recent headwinds and Pinterest’s evolving business model into their forecasts.

*Ongoing advancements in AI-driven visual search and personalized content curation, supported by proprietary multimodal and generative retrieval models, are deepening user engagement and increasing session times. These developments are expected to drive higher average revenue per user (ARPU) and lift both revenue and margins over time.*

Read the complete narrative.

Want to see the financial rocket fuel behind that fair value? One big analytical leap stands out here: rapid revenue expansion, margin shifts, and a valuation multiple commonly associated with the market’s hottest names. Find out which bold assumptions power this price tag. Discover what is driving consensus above current prices, and why the market might be underestimating Pinterest’s next act.

Result: Fair Value of $40.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, accelerating competition and persistent ad pricing pressure could quickly reverse Pinterest’s momentum and challenge even the most bullish forecasts.

Find out about the key risks to this Pinterest narrative.

Build Your Own Pinterest Narrative

If you see things differently, or would rather dig into the numbers on your terms, shaping your own story around Pinterest is quick and easy. You can do it in just a few minutes. Do it your way

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.

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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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