Last week, Pinterest (PINS) surprised investors with stronger-than-expected first-quarter revenue and an upbeat current-quarter forecast, igniting a sharp rally in the shares. PINS stock surged nearly 5% on Friday, despite a bottom-line miss. 

Behind this momentum lies a notable shift in advertising budgets. As tariffs drive up costs for Asia-based e-commerce retailers, many advertisers are reallocating spend toward Pinterest’s European and Rest-of-World markets. This migration highlights the platform’s ability to withstand macroeconomic headwinds that have challenged other digital ad venues. 

Pinterest’s resilient ad revenue was complemented by accelerating user growth and a healthy guidance outlook, setting the stage for sustained upside. Wall Street analysts are overwhelmingly bullish on the stock, which sports a historically low valuation - it just seems to be a matter of how high they think PINS can rise over the next 12 months.

About Pinterest Stock

Based in San Francisco, Pinterest (PINS) is a visual discovery platform that allows users to explore and save ideas through images and videos known as “pins.” The platform helps people plan projects, find inspiration, and discover new interests across categories like fashion, home decor, food, and travel, making it a favorite among both users and advertisers.

Valued at $19.8 billion by market cap, Pinterest’s stock has been under pressure over the past 52 weeks, losing 21.5% of its value. The decline has been driven by tariff-related sell-offs as well as insider selling, which rattled investor confidence.

However, this pullback has created a more attractive valuation. Pinterest’s forward price/earnings (P/E) ratio has fallen sharply from its five-year average of 251x to just 16x today. That not only reflects a deep discount to its historical valuation but also puts it just 30% above the sector median of 12.5x, making Pinterest a fairly reasonably valued growth option compared to many of its social media peers.

Pinterest Delivered Strong Q1 Performance

On May 9, Pinterest reported its Q1 earnings results for fiscal year 2025, which topped analysts' estimates on the top line, but came up slightly short on the bottom line. The company posted revenue of $855 million, up 16% from $737 million a year earlier. North America (U.S. and Canada) sales reached $663 million, roughly flat versus last year’s $660 million, while Europe revenue climbed to $147 million from $127 million. 

Most impressively, global monthly active users hit a record 570 million, a 10% increase year over year, driven by stronger engagement in key markets.

Pinterest recorded net income of $35 million, compared with a $15 million loss in Q1 2024. Adjusted earnings per share came in at $0.23, down from $0.26 a year ago, reflecting continued investment in product development and AI ad targeting. Adjusted EBITDA totaled $172 million, a 5% increase from $164 million in the year-ago quarter, yielding a 20% margin.

Free cash flow was also robust at $356 million, as tight working-capital management offset higher operating expenses. Pinterest exited the quarter with approximately $2.1 billion in cash, cash equivalents, and marketable securities, providing ample liquidity for strategic initiatives.

“We’ve made Pinterest a destination for a user, particularly a shopping destination,” CEO Bill Ready told analysts, noting the platform’s shift from modest growth to “secular share taker” status. CFO Julia Donnelly said the business remains “healthy despite macro headwinds,” highlighting the success of AI-powered engagement tools.

Looking ahead, Pinterest expects Q2 revenue between $960 million and $980 million, implying growth of 12% to 15%, and adjusted EBITDA of $217 million to $237 million. For fiscal 2025, management reiterated its outlook for full-year revenue of $3.70 billion to $3.85 billion, with adjusted EPS in the range of $0.85 to $0.95. 

What Do Analysts Say About Pinterest Stock?

Evercore ISI reiterated its “Outperform” rating on Pinterest stock, and backed a $50 price target. The firm praised Pinterest’s ability to exceed first-quarter expectations, pointing to robust ad revenue and accelerating user engagement. Evercore’s detailed model also underscores the platform’s growing monetization of AI-driven recommendations as a key catalyst for sustained growth.

Across the Street, optimism runs high with a consensus “Strong Buy” rating, although the average price target is somewhat less ambitious at $39.89 - a premium of 21% to current prices. By comparison, Evercore ISI's price target implies expected upside of more than 52% from here.