Pinterest (PINS): Evaluating Valuation After Key Board Refresh and New AI Growth Strategy

Big boardroom news has just shaken up Pinterest (PINS), and if you follow the company’s stock, this is one of those moments that could be worth a second look. Jeremy Levine, a long-time independent director, has retired from the board, and in his place steps Emily Reuter, Instacart’s chief financial officer. The shift did not stem from any disagreement. By all accounts, it is about new energy and expertise. With Reuter’s background at Instacart and Uber, Pinterest is signaling a push to sharpen its financial strategy and lean further into its AI-driven shopping ambitions.

Despite these headline changes, the stock actually slipped 1.35% in a recent session, bucking the broader market’s momentum. Pinterest is not exactly a sleepy story. Its shares have climbed 17% year to date and 18% over the past year, but it is still catching up from a rough patch earlier in its public life. This mix of short-term volatility and upward momentum, set against leadership changes and upcoming earnings uncertainties, is why Pinterest remains firmly on investor watchlists.

After the boardroom shuffle and another year of solid returns, is Pinterest still undervalued, or is the market already baking in the next leg of growth?

Most Popular Narrative: 16% Undervalued

According to the latest narrative from Broke_Joe, Pinterest is considered undervalued by 16%, suggesting there is notable upside from current levels if the underlying assumptions play out.

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.

Curious what exactly drives this bullish outlook? Find out which future financial milestones and aggressive profit targets are fueling such an optimistic fair value. The narrative is built on bold growth projections and margin improvements you will not want to miss. Consider a sharp rise in monetization, major tech integrations, and a path toward much higher profitability. What numbers are at the heart of this upgrade?

Result: Fair Value of $42.63 (UNDERVALUED)

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

However, slower international user growth or delays in monetizing new ad formats could challenge Pinterest’s ability to deliver on these bullish projections.

Find out about the key risks to this Pinterest narrative.

Another View: What Does Our DCF Suggest?

While the narrative points to Pinterest being undervalued, our SWS DCF model also finds the company trading below its fair value using projected cash flows. However, how reliable are these forecasts for the long term?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pinterest for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Pinterest Narrative

If the current bull or bear cases do not quite fit your view, you can dig into the full data set and craft a narrative of your own. 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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