Pinterest (PINS) Launches Visual Search Ads As Its Undervalued Story Faces A Fresh Test

Pinterest (PINS) is back in the spotlight after launching Visual Search Ads and new advertiser tools, a product push that has sharpened attention on how the platform turns user activity into revenue.

Against that product rollout, Pinterest’s share price has slipped, with a 30 day share price return down 18.92%, a year to date share price return down 28.84%, and a 1 year total shareholder return down 43.75%. This points to fading momentum even as product news and index changes, including its recent removal from the FTSE All World Index, keep the stock in focus.

Scan how Pinterest’s recent sell-off compares with other potential rebound candidates across our hand-picked list of 31 high quality undervalued stocks.

Pinterest looks busier than ever on the product side while the share price has retreated hard. Is this a strong business now trading at a fair tag or a value trap in the making?

Most Popular Narrative: 35% Undervalued

On the most followed narrative, Pinterest’s estimated fair value of $28.99 sits well above the last close at $18.90. This puts the recent sell-off against a still-supportive valuation story built around engagement, AI tools, and ad efficiency.

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. This may support higher average revenue per user (ARPU) as well as revenue and margins over time.

See why 110 investors see Pinterest as 35% undervalued.

Result: Fair Value of $28.99 (UNDERVALUED)

Still, the narrative around Pinterest breaks quickly if international monetization stalls or ad pricing softens further, especially as larger rivals push harder into AI-driven ads.

Find out about the key risks to this Pinterest narrative.

Another View: Pinterest On Earnings Multiples

There is a different story once Pinterest is judged on its current P/E. The stock trades around 43x, while the US Interactive Media and Services group sits closer to 10.1x and peer companies average 21.8x. The fair ratio is 28.8x, which suggests the market could move toward a lower multiple over time.

If the share price continues to depend on that rich earnings multiple rather than moving closer to the fair ratio, are investors taking valuation risk that the recent sell-off has not fully exposed yet?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed messages around Pinterest can make it hard to know which story to trust, so move quickly and review the underlying data for yourself. To see how the upside and downside stack up in one place, start with the 2 key rewards and 2 important warning signs.

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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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