Pinterest - AI Stock Analysis

Analysis generated December 9, 2025

Pinterest, Inc. operates a visual discovery engine that allows people to find and be inspired by images and ideas. Since its inception, Pinterest has carved out a niche for itself in the social media landscape by focusing on image and idea sharing rather than personal status updates. This unique positioning has allowed it to attract a distinct user base that is actively looking for inspiration on various topics, from DIY projects to fashion and recipes.

Fundamental Analysis

Revenue: Pinterest reported revenue of $1.05 billion in the last quarter, marking a 5.11% increase compared to the previous quarter. More impressively, this represents a 16.79% increase year-over-year, signaling solid growth and robust performance.

Net Income: The net income for the last quarter stood at $92 million, a significant jump of 137.67% compared to the previous quarter. Year-over-year, this figure surged by 201.44%, showcasing a remarkable improvement in profitability.

EBITDA: The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) came in at $123 million for the last quarter. This figure saw a staggering increase of 6,885.06% from the previous quarter and an astronomical 24,935.76% year-over-year. These numbers suggest substantial operational improvements and cost efficiencies.

P/E Ratio: Pinterest currently has a P/E ratio of 9.39, which may be considered low. A lower P/E ratio can potentially indicate an undervaluation, presenting a bullish outlook for prudent investors.

However, it's worth noting that some company insiders have sold their stocks recently, which could be a bearish signal.

Technical Analysis

Current Stock Price: Pinterest is trading at $27.25, showing a modest increase of 0.59% over the last month. However, it is down by 14.39% compared to a year ago, raising concerns over its long-term performance.

Short-term Momentum: The bullish trend is supported by the Simple Moving Average (SMA10), which is currently at 26.91, up from the previous SMA10 of 26.80. This suggests a potential upward trend in price movement.

RSI: The Relative Strength Index (RSI) is at 28, indicating a potentially oversold condition. An RSI below 30 typically signals a potential buying opportunity, given the stock may be undervalued at this point.

Alternative Data Analysis

Job Postings and Employee Sentiment: Pinterest currently has 131 open positions, which is down by 41% in the last couple of months. This could indicate cost-cutting measures, possibly to improve margins, but is generally not a positive sign for a growing company.

Employee sentiment towards Pinterest is neutral, suggesting a steady but not particularly optimistic internal outlook.

Customer Acquisition: Pinterest's webpage received an estimated 1.34 billion visitors, a 6% increase in the last couple of months, indicating growing user interest and potential customer base expansion. Daily app downloads remain stable at approximately 330,000.

Customer Engagement: The company has 3.2 million followers on Instagram and 2.1 million on Twitter. The number of Twitter followers has decreased by 3% over the last couple of months, indicating a slight decline in user engagement.

According to AltIndex’s AI score, which evaluates a company’s stock using fundamental, technical, and alternative data, Pinterest scores a 44, indicative of a hold signal.

Conclusion and Recommendation

Overall, Pinterest shows strong fundamental growth, particularly in terms of revenue and profitability. The technical indicators suggest short-term bullish momentum, supported by a low P/E ratio and RSI. However, the reduction in job postings and static social media engagement present potential risks. The loss in long-term stock value also adds an element of caution.

Given these mixed signals, the recommendation is a cautious hold. The company displays significant growth potential, but recent insider sell-offs and declining employee sentiment could be red flags worth monitoring. Investors should keep a close eye on upcoming earning reports and market conditions before making any significant investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.