Pinterest (PINS) Stock Forecast & Price Target

Pinterest has demonstrated notable financial progress, with an Adjusted EBITDA of $306 million reflecting a 24% year-over-year increase that slightly exceeded the upper end of guidance expectations. The company reported third-quarter sales of $1,049 million, marking a 17% increase year-over-year that aligns with the high end of guidance, while monthly active users rose by 22 million to 600 million, surpassing projections. Additionally, strong growth in emerging verticals and the implementation of AI to enhance ad-driven content are expected to sustain sales growth in the mid to high teens over the long term, further contributing to a positive outlook for the company's stock performance.

Pinterest's revenue growth is showing a concerning trend, with a sequential decline from 16% to 8% over the period from 4Q24A to 4Q25E, reflecting a consistent drop in user spending, particularly in the North American market. The company's revised estimates indicate a 4Q25 revenue projection of $1.3 billion, a mild increase of 15.3% year-over-year, which is down from an earlier forecast of 16% growth, coupled with a decrease in EBITDA margins to 40.9%. Furthermore, broader macroeconomic uncertainties and decreased spending from Asia-based eCommerce players have compounded the challenges, leading to a downward adjustment in overall revenue expectations for the full year to $4.2 billion, down approximately $10 million from previous estimates.