Pinterest (PINS): Assessing Valuation as AI Innovations and Engagement Gains Draw Investor Interest

Fresh off its presentation at the PyTorch Conference 2025, Pinterest (NYSE:PINS) is capturing attention as it leans further into generative AI, user intent mapping, and new content controls. These initiatives could shape engagement and monetization ahead of the holiday season.

See our latest analysis for Pinterest.

Pinterest's share price has seen a modest uptick over the past week, with a 4.9% 7-day return, and year-to-date share price return of 11.1%. While 1-year total shareholder return sits at 5%, three-year returns of 36% make clear that momentum can build quickly on renewed optimism. Recent improvements in engagement and monetization, especially ahead of the crucial holiday ad season, seem to be fueling the latest buying interest.

If Pinterest’s evolving AI strategy has you curious, it might be the perfect time to explore how other tech and AI-driven businesses are advancing. See the full list for free.

Yet with all this innovation and renewed momentum, investors face a familiar question: Is Pinterest’s current price truly reflecting its potential, or is there still room for upside if growth continues to surprise?

Most Popular Narrative: 20% Undervalued

Pinterest recently closed at $33.97, a substantial distance from the narrative fair value of $42.63. The current market seems cautious, but the narrative anticipates a much brighter outlook based on transformative drivers.

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 approximately $3.1 billion to between $5.5 billion and $7.2 billion, with net profit margins expanding from around 10% to a range of 17% to 21%, reflecting greater operating leverage and ad efficiency.

Read the complete narrative.

Want the unfiltered story behind these bold numbers? There's a crucial factor supercharging both top-line estimates and bottom-line margins. One change reshapes how Pinterest might monetize intent and engagement, and it just might tip the balance on the company's future profits. See the real assumptions that fuel this sky-high price target.

Result: Fair Value of $42.63 (UNDERVALUED)

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

However, persistent competition from larger platforms and unpredictable shifts in digital ad spending could hinder Pinterest’s ambitious growth targets and margin expansion.

Find out about the key risks to this Pinterest narrative.

Build Your Own Pinterest Narrative

If you see the story differently or want a fresh perspective based on your own research, you can shape your own view 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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