Pinterest (PINS): Reassessing Valuation After 600M Users and Strong Profit Margins Fuel Investor Interest

Surge in Users and Profits Puts Pinterest Stock Back in Focus

Pinterest (PINS) just crossed 600 million monthly active users, growing 11% over the past year, while maintaining unusually strong EBITDA and free cash flow margins. This combination is pulling investors back to the stock.

See our latest analysis for Pinterest.

Despite this user and profit strength, Pinterest’s share price return has been choppy, with a steep 3 month share price return decline and a negative 1 year total shareholder return indicating that sentiment is still catching up to the fundamentals.

If this kind of growth story has your attention, it could be a good moment to see what else is on the move and explore high growth tech and AI stocks.

Yet with the share price down over the past year despite solid user growth and a sizable discount to analyst targets, investors face a key question: is Pinterest still undervalued, or are markets already pricing in its next leg of growth?

Most Popular Narrative Narrative: 28.6% Undervalued

With the narrative fair value sitting well above Pinterest’s last close of $26.89, the valuation case leans on strong growth and profitability expectations.

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, which should drive higher average revenue per user (ARPU) and lift both revenue and margins over time.

Read the complete narrative.

Want to see what kind of revenue lift and margin reset this narrative is baking in, and which future earnings multiple makes it all add up?

Result: Fair Value of $37.64 (UNDERVALUED)

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

However, softer ad pricing and intensifying competition from larger social and search platforms could stall ARPU gains and squeeze margins faster than expected.

Find out about the key risks to this Pinterest narrative.

Build Your Own Pinterest Narrative

If this view does not quite fit your outlook or you would rather dive into the numbers yourself, you can build a custom narrative in 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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