Pinterest (PINS) Stock on December 7, 2025: Earnings Shock, AI Pivot and What 2026 Forecasts Say

Pinterest’s stock has spent late 2025 in a weird limbo: the business is putting up record user numbers and solid cash flow, while the share price sulks near the bottom of its 52‑week range.

As of the latest close (Friday, December 5, 2025), Pinterest (NYSE: PINS) is trading around $26.75, down sharply from its 12‑month high of $40.90 and only modestly above its low of $23.68. With a market cap of roughly $18 billion, the stock trades at about 9–10x earnings, a PEG ratio near 1.7, and a beta below 1, making it less volatile than the broader tech complex. ^[1]

Over the last six months, PINS shares have fallen roughly 18–19%, even as the S&P 500 gained more than 14% over the same stretch. ^[2] That divergence—falling price, improving operations—is the core of today’s Pinterest story.

This article pulls together the latest news, forecasts and valuations as of December 7, 2025, for readers following Pinterest stock on Google News and Discover.

Fresh Headlines as of December 7, 2025: Institutions Buy the Dip

The newest development on December 7, 2025, is on the ownership side rather than the product side.

1832 Asset Management L.P. disclosed a new position in Pinterest worth about $2.05 million, according to a fresh 13F-based note from MarketBeat. ^[3]
Earlier this week, CW Advisors LLC filed that it bought 241,915 PINS shares (around $8.7 million) in the second quarter, part of a broader wave of institutional activity in the name. ^[4]

MarketBeat’s data suggests that around 89% of Pinterest’s float is held by institutions and hedge funds, underscoring how professional investors dominate trading in the stock. ^[5]

At the same time, insiders—including co‑founder Benjamin Silbermann and CFO Julia Donnelly—have been net sellers, unloading just over 400,000 shares in the past 90 days, even though insider ownership remains a bit above 7%. ^[6]

That mix—heavy institutional ownership plus insider selling—is one reason sentiment on PINS looks cautious in the short term, even as many fundamental metrics are moving the right way.

Q3 2025 Earnings: Record Users, Revenue Beat… and a Brutal Sell‑Off

Pinterest’s latest earnings report (for the quarter ended September 30, 2025) is the anchor for almost all current analysis.

Headline numbers from the official Q3 2025 release

According to Pinterest’s Q3 2025 earnings press release: ^[7]

Revenue: $1.049 billion, up 17% year over year (16% in constant currency).
GAAP net income: $92.1 million (9% margin), up more than 200% from $30.6 million a year earlier.
Non‑GAAP net income: $262.9 million, up 18% year over year.
Adjusted EBITDA: $306.1 million, a 29% margin versus 27% a year ago.
Operating cash flow: $321.7 million;
Free cash flow: $318.4 million, up 30% year over year.

User and monetization metrics also hit records: ^[8]

Global MAUs: 600 million, up 12% year over year.
U.S. & Canada MAUs: 103 million (+4%).
Europe MAUs: 150 million (+8%).
Rest of World MAUs: 347 million (+16%).
Global ARPU: $1.78, up 5% year over year, led by strong ARPU growth in Europe and the Rest of World.

Zacks’ recap of the quarter highlights the same core themes: revenue came in well ahead of consensus, MAUs reached an all‑time high, and ARPU improved across all regions, helped by AI‑powered ad tools and improving shoppability on the platform. ^[9]

Q4 2025 guidance

For Q4 2025, management guided to: ^[10]

Revenue: $1.313–$1.338 billion (14–16% year‑over‑year growth).
Adjusted EBITDA: $533–$558 million.

That’s solid double‑digit growth with hefty profitability—but slightly under what a hype‑charged market had hoped for.

Why the stock tanked anyway

Despite those strong fundamentals, PINS stock fell nearly 20% in after‑hours trading after the Q3 report and has remained under pressure since. GuruFocus summarizes the market reaction bluntly: “Pinterest stock tanks 20% after earnings miss, soft outlook.” ^[11]

Key reasons cited across recent coverage:

Profit miss vs. expectations: Non‑GAAP EPS of $0.38 came in below analyst expectations around $0.42, even though revenue beat. ^[12]
Ad spending headwinds: Management pointed to “pockets of moderating ad spend” in the U.S. and Canada, where retailers are dealing with margin pressure and new tariffs on home goods and building materials. ^[13]
Ad pricing down sharply: Both Reuters (for Q2) and later commentary note that ad pricing has fallen roughly 24–25% year over year, mainly because a growing share of impressions now comes from international markets where ad rates are lower. ^[14]

In other words, Pinterest is growing quickly, but it’s trading short‑term margin for long‑term scale, and Wall Street reacted badly when that trade‑off showed up in the EPS line.

The AI Shopping Pivot: What’s Actually Changing in the Business

If you only remember one phrase from Pinterest’s current strategy, it’s this: “AI‑powered visual shopping assistant.”

In an early November breakdown of the quarter, Gotrade notes that CEO Bill Ready described Pinterest as having transformed from a digital “mood board” into the “first AI‑powered visual shopping assistant.” ^[15]

Recent coverage across Seeking Alpha, PYMNTS and other outlets highlights several key product and engagement trends: ^[16]

Massive search and discovery volume: Around 80 billion queries processed in Q3, up roughly 44% year over year, driven by AI‑driven search and recommendation.
Gen Z dominance: Gen Z now accounts for more than half of Pinterest’s user base and is the fastest‑growing cohort on the platform. ^[17]
AI‑driven feed and search: Pinterest’s algorithms now actively surface ideas as soon as users open the app, rather than waiting for typed searches.
Performance+ ad suite: AI‑optimized ad products (Pinterest Performance+) are gaining traction with advertisers, cutting campaign setup times and improving conversion metrics. ^[18]
Commerce integrations: Deeper integrations with partners like Amazon let users jump from a buyable Pin straight into checkout, tightening the loop from inspiration to purchase. ^[19]

The flip side of this global, AI‑driven expansion: international impressions are booming, but at lower ad prices, compressing CPMs even as engagement and outbound clicks to advertisers rise. Gotrade cites a roughly 40% increase in outbound clicks in Q3, showing users are acting on what they see, but also notes the drop in pricing and retailer caution in some markets. ^[20]

This “high‑engagement, lower‑CPM” puzzle is at the heart of almost every forecast for Pinterest stock.

Wall Street’s View: Targets Cluster Around $39

Despite the earnings drama, Wall Street hasn’t turned on Pinterest—in fact, analysts remain broadly constructive.

Consensus rating and 12‑month price target

MarketBeat’s forecast page, updated through early December, shows: ^[21]

31 analysts covering PINS over the last 12 months.
Consensus rating: Moderate Buy (roughly 1 Strong Buy, 22 Buy, 8 Hold, 0 Sell).
Average 12‑month price target:$39.10, implying about 46% upside from the recent $26.76 close.
Target range:
- High: $50
- Low: $30

StockAnalysis, which tracks a similar but not identical set of analysts, also shows an average target close to $39 and classifies the stock as a “Buy”, with revenue expected to grow from about $4.32 billion in 2025 to $4.99 billion in 2026 (roughly 15–16% growth). ^[22]

Recent rating actions from big banks (Morgan Stanley, UBS, JPMorgan, Goldman Sachs, Barclays, Roth and others) generally lowered price targets after Q3, but in many cases those trimmed targets — $32, $34, $36, $38 or $48 — still sit 20–80% above current levels. ^[23]

Morningstar’s more cautious stance

Morningstar, known for its intrinsic‑value focus, took a more conservative line after Q3. Its latest note cut Pinterest’s fair value estimate by about 19% to $35 per share, citing rising competition and a weaker near‑term outlook. ^[24]

Even that trimmed fair value, however, is still well above today’s price.

Valuation Deep Dive: From DCF to Quant Models

Beyond traditional analyst targets, several research shops have built explicit valuation models for Pinterest—and they don’t all agree.

Simply Wall St: “Very undervalued” on cash flows

Simply Wall St has published multiple pieces on Pinterest in recent weeks. Two things stand out from their December valuation work: ^[25]

Using a discounted cash flow (DCF) model, they estimate an intrinsic value of roughly $51.12 per share based on free cash flow rising from about $1.13 billion today to roughly $1.98 billion in 2030 and $2.34 billion in 2035. That implies Pinterest is around 47% undervalued relative to a recent price near $27.
They also compute a “Fair P/E ratio” of about 14.6x based on Pinterest’s growth, margins, risk and industry context. Against a current P/E near 9.3x, that multiple‑based view also flags the stock as undervalued.

In a separate narrative‑style analysis, Simply Wall St maps out scenarios that produce fair values in the high‑30s to low‑40s (for example, around $37.64, implying about 41% upside), depending on how optimistic you are about future margins and growth. ^[26]

Their summary tagline is unambiguous: Pinterest is “very undervalued with a flawless balance sheet”—though they emphasize that this is a long‑term, fundamentals‑based view, not a short‑term trading call. ^[27]

StockStory: Strong margins and cash flow

StockStory’s recent “3 reasons we’re fans of Pinterest (PINS)” piece underscores why many growth‑at‑reasonable‑price investors are circling the name: ^[28]

MAU growth: Pinterest’s MAUs have grown about 11% annually over the last two years, reaching 600 million in the latest quarter.
Profitability: The company has averaged an EBITDA margin of 28.3% over the past two years.
Free cash flow: FCF margin has averaged about 27.4%, giving Pinterest ample reinvestment capacity.
Valuation: After the recent pullback, StockStory cites a forward EV/EBITDA multiple of ~13.4x at a share price around $26.96.

Their conclusion: operationally, Pinterest already looks like a high‑quality, cash‑generative internet business; the question is whether the market is over‑penalizing the stock for near‑term ad pricing and macro risks.

Quant fundamental screen: Martin Zweig model

Nasdaq’s Validea‑powered report applies the classic Martin Zweig “growth investor” strategy to PINS. Pinterest scores 62% on that model—below the “strong interest” threshold but still positive—passing tests for: ^[29]

Reasonable P/E ratio;
Solid sales and current‑quarter earnings growth;
Low debt and favorable debt‑to‑equity;
Positive insider transaction signals.

The model is more skeptical about the persistence of long‑term EPS growth, which echoes a common concern: Pinterest’s earnings profile is still relatively young and volatile, making long‑range extrapolation tricky.

Technical & Algorithmic Forecasts: A Much More Bearish Take

Not everyone thinks Pinterest stock is cheap. Algorithmic, technically driven models can look at the same price data and come to the opposite conclusion.

Crypto‑focused site CoinCodex runs a systematic forecast for PINS based entirely on price action and technical indicators. As of December 7, 2025, its dashboard shows: ^[30]

Current price: $26.75
Near‑term technical sentiment: Bearish, with only 3 bullish vs 23 bearish indicators and a Fear & Greed Index reading of 39 (“Fear”).
Short‑term projection: PINS could drift lower over the next week, with the model expecting a roughly 7–8% drop from current levels.
One‑year forecast: around $15.71, implying more than 40% downside.
2030 forecast: around $10.81, or nearly 60% below current prices, with the algorithm’s projected peak price for the decade stuck under $30.

CoinCodex explicitly labels these outputs as not investment advice and warns that they’re simply technical extrapolations, but they’re a useful reminder: models that look only at charts, not cash flow, can produce wildly different stories than DCF‑driven analysts.

Long‑Term Growth Narrative: 2028–2030 and Beyond

Simply Wall St’s longer‑term narrative framework projects Pinterest reaching about $5.9 billion in revenue and $1.0 billion in earnings by 2028, implying roughly 14–15% annual revenue growth from current levels. ^[31]

Meanwhile, StockAnalysis’ consensus forecast points to: ^[32]

Revenue rising from $3.65 billion (2024) to $4.32 billion (2025) and $4.99 billion (2026);
EPS dipping this year then rebounding in 2026, with forward P/E in the mid‑teens.

Separately, a widely shared Motley Fool piece (syndicated via Nasdaq) argues that Pinterest stock could “soar 60% by 2026”, pointing to record engagement, the AI shopping pivot and robust analyst price targets as reasons the post‑earnings sell‑off may be an overreaction. ^[33]

So the long‑term, fundamentals‑first camp paints a picture of:

High‑teens revenue growth;
Healthy double‑digit margins;
A business migrating toward being an AI‑driven shopping and discovery platform rather than a static image board.

That’s the world in which $35–$50 fair values make sense.

Key Risks: Why the Market Is Still Skeptical

For all the bullish models, there are plenty of red flags that explain why PINS is trading closer to $27 than $50 today.

Across Reuters, Zacks, Simply Wall St, Morningstar and others, a few themes repeat: ^[34]

Ad pricing pressure
As Pinterest pushes aggressively into emerging markets and lower‑priced ad categories, overall ad pricing has dropped by roughly a quarter year over year. That’s great for user growth and engagement but can weigh on revenue quality and margins if not offset by higher volumes and better ARPU over time.
Macro and tariff headwinds
New U.S. tariffs on home goods and building materials have forced some large retailers to trim ad budgets, and management has openly pointed to “moderating ad spend” in North America. A weaker consumer or prolonged trade frictions could keep growth at the low end of guidance.
Intense competition
Pinterest isn’t the only platform chasing commerce‑driven ad dollars. Meta, TikTok, YouTube, Amazon and other players already have deeper advertiser relationships and enormous scale. Morningstar’s fair‑value cut to $35 explicitly cites rising competitive pressure as a key factor. ^[35]
Mixed sentiment after the earnings miss
A 20% overnight drawdown leaves scars. Technical indicators now show a predominantly bearish setup, and many short‑term traders view PINS as a “show me” story until the company proves that Q3 was a bump, not a trend. ^[36]
Execution risk in AI and shopping
The AI narrative is compelling, but turning 600 million users into consistently monetized shoppers—without overwhelming them with ads—is a complex design and product challenge. Seeking Alpha and other commentators frame Pinterest as a classic “GARP with execution risk” story: excellent unit economics, but lots that can go wrong between here and 2030. ^[37]

So Where Does That Leave Pinterest (PINS) Stock?

Putting all of this together as of December 7, 2025:

The business:
- Record‑high users and engagement;
- Double‑digit revenue growth in the mid‑teens;
- Strong margins and free cash flow;
- A clear strategy to become an AI‑driven visual shopping engine.
The stock:
- Trading around $26–27, near the low end of its 12‑month range; ^[38]
- Valuation of roughly 9–10x earnings and mid‑teens forward multiples, below many peers; ^[39]
- Street consensus sees ~45–46% upside over 12 months, with average targets near $39 and many individual targets still higher. ^[40]
- DCF‑style models (Simply Wall St and others) argue for even greater undervaluation, with fair values in the high‑40s to low‑50s. ^[41]
- Technical/algorithmic models like CoinCodex point the other way, forecasting significant downside over the next year and labeling sentiment as bearish. ^[42]

In simple terms: fundamental analysts mostly see a mispriced growth compounder; technicians mostly see a falling knife.

For investors, traders and anyone tracking PINS on Google News or Discover, the key questions over the next few quarters are:

Can Pinterest keep growing revenue in the mid‑teens without further EPS disappointments?
Will AI‑driven shopping tools and international expansion lift ARPU enough to offset lower ad prices?
And will macro headwinds in retail ad spend ease, or get worse?

Those answers will do more for the stock than any model, DCF or forecast ever will.