Pinterest (PINS) Stock Forecast & Price Target

Pinterest's robust financial performance is underscored by a 24% year-over-year increase in Adjusted EBITDA, reaching $306 million, which slightly exceeded estimates. The company's third quarter sales grew to $1,049 million, aligning with the high end of its guidance range at 17% year-on-year growth, while monthly active users increased to 600 million, surpassing projections by approximately 10 million. Additionally, the strong performance in emerging verticals and the effective use of AI to enhance ad-driven content suggests sustained sales growth, with management anticipating revenue growth of 13.8% to 15.9% year-on-year for the upcoming quarter.

Pinterest's outlook is negatively impacted by a sequential decline in growth rates for US and Canadian markets, which decreased continuously from 16% to 8% from 4Q24A to 4Q25E. Additionally, the company's revenue estimates for 4Q25 have been lowered to $1.3 billion, reflecting a reduction in year-over-year growth expectations and a decrease in EBITDA margin from 41.9% to 40.9%. The broader macroeconomic uncertainty and diminishing eCommerce spend from Asia-based players have further exacerbated these challenges, contributing to a decline in stock value of approximately 20% after the release of mixed 3Q results.