From Nasdaq: 2025-06-02 12:05:00

Pinterest, Inc. (PINS) stock declined 12.5% in the past three months, underperforming the Internet – Software sector and S&P 500. Despite outperforming Snap Inc. (SNAP), it lagged behind Meta Platforms, Inc. (META). Pinterest’s collaboration with the WNBA’s New York Liberty aims to enhance user engagement and open up monetization opportunities in the sports marketing space.

Pinterest’s focus on operational rigor, AI models, and ad tools is driving revenue growth. The company’s visual search feature and AI integration are expected to boost user engagement. However, heavy dependence on advertising revenue, macroeconomic volatility, and intense competition pose challenges for Pinterest’s financial performance. Estimate revisions for 2025 and 2026 show a downtrend, indicating bearish sentiments.

Pinterest’s valuation appears relatively cheaper compared to the industry, with a lower price/sales ratio. The company is witnessing strong user growth and focusing on shoppability and monetization potential. Despite macroeconomic challenges and competition, Pinterest’s strategic collaborations and AI tools support growth potential. Investors should trade with caution due to the company’s current Zacks Rank #3 (Hold).

Zacks names a #1 semiconductor stock with significant room for growth. With strong earnings growth and expanding customer base, the stock is positioned to meet the increasing demand for AI, ML, and IoT technologies. Global semiconductor manufacturing is projected to grow substantially by 2028. Visit Zacks for more information on this stock and other investment recommendations.



Read more at Nasdaq: Pinterest Down 12.5% in Three Months: Should You Avoid PINS Stock?