Pinterest (PINS) Stock Forecast & Price Target

Pinterest has demonstrated robust financial performance, with a significant 24% year-over-year increase in Adjusted EBITDA to $306 million, surpassing estimates. The company's third-quarter sales reached $1,049 million, aligning with the high end of its guidance range and marking a 17% year-over-year growth. Additionally, Pinterest's user engagement remains strong, highlighted by a 54% increase in impressions year-over-year and a growing monthly active user base which now stands at 600 million, outpacing earlier projections.

The financial analysis indicates concerns regarding Pinterest's future user growth potential, as there appears to be no clear catalyst for improvement, leading to sequential declines in user growth rates projected from 16% to 8%. Revenue estimates for 4Q25 have been revised downward, projecting $1.3 billion with a year-over-year growth of 15.3%, a decrease from the prior estimate of 16.0%, and EBITDA expectations have similarly been reduced, reflecting a margin drop from 41.9% to 40.9%. Additionally, overall revenue projections for the full year have been lowered by approximately $10 million, suggesting a trend of diminishing expectations amidst challenging conditions, particularly in North American ad revenue critical to the company's financial performance.