Pinterest (PINS): Reassessing Valuation After Recent Share Price Rebound and Longer-Term Pullback

Pinterest (PINS) has quietly outperformed the market over the past month, climbing about 5%, even as the stock remains well below its highs after a rough past 3 months.

See our latest analysis for Pinterest.

That rebound sits against a tougher backdrop, with the share price still down sharply on a 90 day basis while the three year total shareholder return remains positive. This suggests longer term believers are not capitulating and momentum may be stabilizing rather than accelerating.

If Pinterest’s recent swings have you reassessing your playbook, this could be a good moment to explore high growth tech and AI stocks for more platform driven growth stories at different stages of their journey.

With shares still trading well below analyst targets despite steady revenue growth, investors face a key question: Is Pinterest undervalued after its pullback, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 29.9% Undervalued

With the narrative fair value sitting well above Pinterest’s last close around $26, the story points to a meaningful disconnect between price and projected potential.

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 climb and margin reset could justify this gap, and why the future earnings multiple needs to stretch? The full narrative explains the specific growth runway, profitability shift, and re rating assumptions behind that higher fair value.

Result: Fair Value of $37.28 (UNDERVALUED)

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

However, soft ad pricing and intensifying competition from larger platforms could blunt Pinterest’s monetization gains and challenge the optimistic growth assumptions baked into this narrative.

Find out about the key risks to this Pinterest narrative.

Build Your Own Pinterest Narrative

If this view does not quite align with your own thinking, or you would rather dig into the numbers yourself, you can build a personalized thesis from scratch 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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