Key Takeaways
- Pinterest stock has plummeted 69% in the last twelve months, currently hovering around $20.29
- First quarter revenue reached $1.01 billion, representing 17.8% year-over-year growth and exceeding forecasts
- The platform’s monthly active user base expanded to 631 million with improved monetization metrics
- Wall Street consensus shows a “Hold” rating with a mean price objective of $27.40
- Elliott Management maintains a $1 billion stake; the company’s EV/EBITDA ratio of 7.5x trades significantly under industry comparables
Pinterest (PINS) stock has experienced a devastating 69% decline over the past year, currently trading near the $20 level, as the social media company has struggled to meet Wall Street’s revenue growth expectations consistently.
The numbers paint a challenging picture. However, the company’s latest quarterly report has provided reasons for cautious optimism.
Shares of PINS began trading at $20.29 on Friday morning. The stock’s twelve-month range spans from a low of $13.84 to a peak of $39.93. The 50-day simple moving average currently stands at $20.19.
The first quarter earnings release on May 4th delivered earnings per share of $0.27, surpassing the Street consensus of $0.22 by five cents. Total revenue came in at $1.01 billion, exceeding analyst expectations of $965.84 million and marking a solid 17.8% increase compared to the prior year period.
The platform’s monthly active user count climbed to 631 million, while the company demonstrated improved monetization through rising average revenue per user. Pinterest’s advertising technology infrastructure and Performance+ tracking capabilities have played central roles in this progress.
The growth trajectory hasn’t been without obstacles. Reduced advertising budgets from food and beverage brands initially dampened results, while more recently, tariff-related headwinds impacted Canadian revenue streams.
Signs of Revenue Momentum Returning
Examining the period from Q1 2024 through Q1 2025, Pinterest’s annual revenue growth rate averaged approximately 16%. The weakest quarterly performance registered at 13% during early 2024. Following that trough, growth rates have demonstrated greater consistency.
Evercore analyst Mark Mahaney characterized the first quarter results as “an encouraging early proof point” that the management team’s strategic initiatives — expanding revenue diversification and accelerating Performance+ platform adoption — are “starting to translate into tangible results.”
Pinterest has exceeded revenue projections in seven out of the last nine reporting periods. Both instances where the company fell short involved misses of less than one percent.
Current Wall Street coverage includes sixteen analysts with Buy ratings, eighteen with Hold recommendations, and a single Sell rating. The consensus twelve-month price target stands at $27.40.
Morgan Stanley recently upgraded its price objective from $27 to $30 while reaffirming an Overweight stance. TD Cowen boosted its target from $36 to $38 accompanied by a Buy rating. Robert W. Baird adjusted its target upward from $20 to $24 while maintaining a Neutral position.
Analyst projections anticipate earnings growth will modestly outpace revenue expansion over the coming three years, with operating margins forecast to exceed 32% by fiscal 2029.
Valuation Metrics and Institutional Activity
Trading at an enterprise value-to-EBITDA multiple of 7.5x, Pinterest’s valuation represents approximately half the broader S&P 500 benchmark and sits below e-commerce competitors Etsy and eBay, which both command multiples above 10x.
Pacer Advisors expanded its holdings by 32.9% during the fourth quarter, bringing its position to 2,951,421 shares with an approximate value of $76.4 million. Institutional ownership accounts for 88.81% of outstanding shares.
Elliott Management — the activist investment firm led by Paul Singer — established a $1 billion position in Pinterest during early 2023. Elliott has built a reputation for strategic investments in undervalued companies, with previous positions including Southwest Airlines and Dexcom.
Company insiders have divested 171,112 shares over the trailing 90-day period, representing approximately $3.6 million in aggregate value. Insider Wanjiku Juanita Walcott executed a sale of 27,337 shares on May 29th at a price of $20.46 per share. These transactions occurred under predetermined 10b5-1 trading arrangements.
The analyst community currently projects full-year earnings per share of $0.65 for Pinterest.
