Pinterest Stock 2026: Buy, Hold, or Sell?
Pinterest operates as a visual discovery engine where users find ideas through images, videos, and products. The platform serves over 500 million monthly active users worldwide, with a focus on inspiration for home decor, fashion, recipes, and travel.
Founded in 2010, the company went public in 2019 and has since expanded into e-commerce features like shoppable pins and partnerships with retailers.
In early 2026, the stock trades near its 52-week low after a series of events, including workforce reductions and shifts in advertising trends.
Investors now weigh whether this dip presents an entry point or signals deeper issues.
Pinterest's Business Model and Revenue Streams
Pinterest generates most of its income from advertising. Brands pay to promote pins that appear in user feeds, searches, and recommendations.
The company also earns from affiliate links and shopping integrations, where users can buy items directly from pins.
In the third quarter of 2025, revenue reached $1.05 billion, up from previous periods, driven by higher ad spend in retail and consumer goods sectors.
International markets contribute growing portions, with shopping ads making up 30% of overseas revenue.
Unlike social media rivals, Pinterest emphasizes discovery over social interaction, which leads to higher user engagement times and better ad conversion rates.
The platform's algorithm uses machine learning to personalize content, and recent investments in artificial intelligence aim to improve recommendation accuracy.
This could boost average revenue per user, currently lower than competitors like Meta or Snap.
For instance, global ARPU stood at about $1.60 in recent quarters, with room for growth through enhanced monetization tools.
Recent Stock Performance and Key Events
As of February 5, 2026, Pinterest shares closed at $19.87, down 4.33% from the prior session.
The stock has fallen 32% over the past 12 months, influenced by broader market pressures in tech and advertising.
A major trigger came in late January 2026, when the company announced plans to cut nearly 15% of its workforce, about 350 employees, to redirect resources toward AI development.
This move followed internal changes, including reports of engineers being let go amid AI-related restructuring.
The layoffs reflect a push for efficiency, similar to actions by other tech firms. Management stated the cuts would free up funds for AI enhancements, potentially leading to better user retention and ad performance.
Yet the announcement sparked a sell-off, with shares dropping further.
On a positive note, user metrics remain strong, with forecasts for 16 million net additions to monthly active users in the first quarter of 2026.
Financial Health and Metrics
Pinterest's financial position shows resilience despite stock volatility.
The company reported $262.93 million in earnings for the third quarter of 2025, with trailing twelve-month revenue at $4.06 billion.
Diluted earnings per share over the same period hit $2.73, indicating profitability improvements.
Market capitalization stands at $13.51 billion, with a price-to-earnings ratio that suggests the stock trades at a discount compared to growth peers.
| Metric | Value (Trailing 12 Months) | Year-Over-Year Change |
|---|---|---|
| Revenue | $4.06 billion | +15% (estimated) |
| Net Income | Positive, with Q3 at $262.93 million | Improved from losses in prior years |
| EPS (Diluted) | $2.73 | +17.86% expected for Q4 2025 |
| Market Cap | $13.51 billion | Down from peaks |
| Cash Reserves | Strong balance sheet, low debt | Stable |
| ARPU (Global) | ~$1.60 | Up in key markets |
Data compiled from recent reports. Analysts project revenue growth of 14.9% annually, with operating margins at 11.1%, potentially pushing the stock to $30 by late 2027.
The upcoming earnings report on February 12, 2026, will provide clarity.
Expectations include $1.332 billion in fourth-quarter revenue, slightly above consensus, though some estimates have been trimmed due to ad market softness.
Market Position and Competitive Landscape
Pinterest holds a unique spot in the digital advertising space. It competes with Meta's Instagram, Google's search, and Amazon's shopping ecosystem, but its visual focus sets it apart.
Users often start purchase journeys on Pinterest, leading to high-intent traffic for advertisers.
Partnerships with Shopify and other e-commerce platforms strengthen its position in visual commerce.
In 2026, the company benefits from trends like increased online shopping and content personalization. Global monthly active users could reach 600 million, fueling ad inventory.
Yet competition intensifies, with TikTok and Instagram Reels drawing younger audiences.
Pinterest counters this through video pins and AI-driven curation, aiming for sustained engagement.
International expansion offers growth, as non-U.S. users grow faster than domestic ones.
Europe and Asia present untapped potential, though regulatory hurdles in data privacy could slow progress.
Risks Facing Pinterest Investors
Economic slowdowns affect advertising budgets, a core risk for Pinterest.
If recession fears materialize, brands may cut spending, impacting revenue.
Recent analyst notes highlight softer near-term outlooks due to ad trends.
Execution risks loom after recent layoffs at Pinterest.
While the cuts aim to streamline operations, they could disrupt innovation if key talent leaves.
AI investments carry uncertainty; without quick returns, margins might suffer.
User growth deceleration is another concern, with forecasts showing modest 10.1% annualized increases.
Valuation risks exist too.
The stock trades at a forward P/E multiple that some view as elevated given growth rates.
If earnings miss expectations, further downside could follow.
Opportunities for Growth
AI represents a major opportunity.
By enhancing search and recommendations, Pinterest can increase user time on site and ad clicks.
Management's pivot to AI post-layoffs signals commitment to this area, potentially lifting EPS by over 20% in the upcoming quarters.
E-commerce integration deepens. Features like product tagging and buy buttons turn inspiration into sales, boosting affiliate revenue.
Shopping ads' rise in international markets supports this.
Tentpole events in 2026, such as sports seasons, could drive ad surges.
Long-term, the platform's focus on positive, aspirational content avoids controversies plaguing other social media, attracting premium advertisers.
Analyst Opinions and Price Targets
Wall Street views Pinterest favorably overall. Out of 42 ratings, 27 are Buy, 4 Overweight, 10 Hold, and 1 Sell.
The average price target sits at $35.23, suggesting 77% upside from current levels.
| Firm | Rating | Price Target | Date |
|---|---|---|---|
| Morgan Stanley | Overweight | $35 | Recent |
| HSBC | Hold | Lowered | January 2026 |
| Guggenheim | Buy | $38 | February 2026 |
| KeyBanc | Overweight | $35 (from $40) | February 3, 2026 |
| Roth Capital | Neutral | $29 (from $34) | January 2026 |
Compiled from multiple (verified) sources.
Recent shifts include more Holds, reflecting caution on near-term execution, but Buys dominate for long-term potential.
Is Pinterest a buy, hold, or sell?
It's a Hold for now as:
Given the data, Pinterest appears undervalued at current prices, with strong user metrics and AI focus supporting recovery. Short-term volatility from earnings and ad markets warrants caution, so existing shareholders might hold while monitoring results.
New investors could buy on weakness, targeting the $35 analyst average. The stock suits growth-oriented portfolios, but diversification helps mitigate sector risks.
NOTE: That's our investment verdict for $PINS, and we are not asking you to invest, hold, or sell based solely on the information we've provided. You should do your own research and decide this on your own risk.
If you want some insider data about Pinterest, here's a list of common questions you might have with their short and accurate answers:
What is Pinterest's current stock price?
As of February 5, 2026, the stock trades at $19.87 per share.
Why did Pinterest lay off employees in 2026?
The company reduced its workforce by 15% to reallocate resources toward artificial intelligence initiatives and improve operational efficiency.
What are analysts saying about Pinterest stock?
The consensus rating is Buy or Overweight, with an average price target of around $35 to $38, indicating significant upside potential.
How many monthly active users does Pinterest have?
Pinterest has over 500 million monthly active users, with projections for further growth in 2026.
Is Pinterest profitable?
Yes, the company has achieved profitability, reporting positive net income in recent quarters, including $262.93 million in Q3 2025.
What drives Pinterest's revenue growth?
Advertising from brands and retailers, along with e-commerce features like shoppable pins, fuel revenue increases.
How does Pinterest compare to competitors like Instagram?
Pinterest focuses on visual discovery and inspiration, leading to higher purchase intent, while Instagram emphasizes social sharing and short-form video.
What risks could affect Pinterest's stock in 2026?
Economic downturns impacting ad budgets, competition from other platforms, and execution challenges post-layoffs pose key risks.
When is Pinterest's next earnings report?
The fourth-quarter 2025 earnings are scheduled for February 12, 2026.
Should beginners invest in Pinterest stock?
Beginners might consider it as part of a diversified portfolio, but research volatility in tech stocks first.
What is the projected stock price for Pinterest in 2027?
Some models forecast $30 by late 2027, based on revenue growth and margin improvements.
How has Pinterest's user growth trended?
User additions are expected to slow slightly to 10.1% annually, but absolute numbers remain robust.
Does Pinterest pay dividends?
No, the company does not currently pay dividends, focusing instead on reinvesting in growth.
What role does AI play in Pinterest's strategy?
AI enhances content recommendations and ad targeting, with recent investments aimed at boosting engagement and monetization.
How can I buy Pinterest stock?
Purchase shares through a brokerage account on the NYSE under ticker PINS.
What is Pinterest's market capitalization?
The market cap is approximately $13.51 billion as of early 2026.
Has Pinterest stock split before?
No, Pinterest has not conducted a stock split since going public.
What sectors advertise most on Pinterest?
Retail, fashion, home goods, and consumer packaged goods dominate ad spending.
How does economic uncertainty impact Pinterest?
It can lead to reduced ad budgets from brands, pressuring short-term revenue.
What is the highest price target for Pinterest stock?
Some analysts set targets as high as $50, implying over 150% upside.
