Question: Why would anyone pay 17 times earnings for Johnson & Johnson stock when Pinterest stock is available at a more attractive valuation of 11 times earnings? Most wouldn't—especially when considering three key points:
Pinterest stock price has remained in a tight range in the past few days as investors assess its growth trajectory. PINS ended the week at $34.22, a few points below this month's high of $35.4 It is about 45% above its lowest level in April this year.
The company may be small, but recent changes to its platform should help boost shares.
PINS and SNAP battle for social ecommerce dominance, but one platform's AI edge and user growth may tip the scales.
Pinterest ads will become directly shoppable via Instacart under a new retail media collaboration between the two companies. [contact-form-7] This collaboration will enable Pinterest users to complete a purchase in a few clicks and have the items delivered in as little as 30 minutes, the companies said in a Monday (June 16) press release.
Pinterest stands out with renewed U.S. user growth, international monetization progress, and differentiated, interest-driven content versus social media peers. Q1 results showed accelerating revenue and user growth, especially internationally, with strong ARPU gains and expanding adjusted EBITDA margins. Pinterest trades at attractive valuation multiples versus peers, with a solid balance sheet and ongoing margin expansion, supporting my reiterated buy rating.
Pinterest remains a buy despite near-term growth headwinds from tariffs and tough comparables, as the stock trades at a compelling valuation. The company has posted solid top and bottom line growth alongside surprising strength in MAUs. The company has benefitted from AI, both in its product as well as in operational efficiency.
In the closing of the recent trading day, Pinterest (PINS) stood at $34.75, denoting a -1.03% move from the preceding trading day.
Amazon, Pinterest, and Applied Materials are some stocks that rank highly in a Citi screen for growth names that hold up when the outlook is cloudy.
AI-fueled personalization is powering PINS to record user growth and higher ad relevance, but earnings estimates slip.
PINS has dropped 12.5% in three months, but the introduction of AI-powered tools and strategic collaborations to venture into new markets may offer new growth potential.
Recently, Zacks.com users have been paying close attention to Pinterest (PINS). This makes it worthwhile to examine what the stock has in store.