Pinterest beat analysts' estimates for second-quarter revenue on Thursday, as increased marketing spend on the platform was fueled by its artificial intelligence-powered advertising tools.
AI innovation and Gen Z interest drive momentum for PINS, even as competition and costs begin to mount.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Pinterest (PINS), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended June 2025.
Pinterest (PINS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Recently, Zacks.com users have been paying close attention to Pinterest (PINS). This makes it worthwhile to examine what the stock has in store.
Shares of social media platform Pinterest Inc (NYSE:PINS) were last seen up 3.3% at $38.32, after an upgrade from Morgan Stanley to "overweight" from "equal weight.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Pinterest remains a compelling Buy, thanks to the robust GenAI-driven advertising growth prospects, the growing user engagement/ higher ARPUs, and the improved ad targeting/ sales flywheel. The management's excellent FQ2'25/ FY2025 guidance and the promising consensus estimates point to a sustained top/ bottom-line growth, with expanding margins and richer cash flow. PINS continues to trade at a notable discount to its social media/ advertising peers, despite the high growth, profitable cadence, with it offering interested investors with excellent margin of safety.
Pinterest's Q1 FY25 revenue and MAUs exceeded expectations, driven by strong user engagement and improved monetization with growing advertiser adoption of its low-funnel solutions. International monetization is pressuring ad pricing, but management is confident in the company's resilience as it builds AI-driven personalization and actionability to drive superior user and advertiser outcomes. Meanwhile, forward revenue estimates are being revised higher, signaling the stock has likely bottomed and growth prospects remain robust.
Pinterest continues to deliver robust double-digit revenue growth, with international markets driving significant expansion and engagement. Profitability is improving, with rising margins and strong free cash flow enabling substantial capital returns to shareholders. Valuation appears reasonable, but high stock-based compensation dilutes buyback benefits and inflates free cash flow metrics. Be mindful of this.
Recently, Zacks.com users have been paying close attention to Pinterest (PINS). This makes it worthwhile to examine what the stock has in store.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?