Pinterest (PINS) announces layoffs and office space reduction, causing stock to drop over 90% from 52-week high. Reallocating resources to AI products makes it a buying opportunity for long-term investors. Leaner operations and stronger monetization potential position PINS as an exciting long-term pick, valued attractively compared to peers like Reddit (RDDT).

Reinvesting in AI technology will improve ad targeting, shoppable content, and conversion rates, boosting average revenue per user (ARPU) in 2026. With a forward P/E ratio of 34x, options traders predict Pinterest stock will rise significantly in the next four months, with potential upside of more than 23% from current levels.

Analysts recommend buying PINS shares on the pullback, expecting earnings per share (EPS) to improve by over 20% this fiscal quarter. Consensus rating remains a “Moderate Buy,” with price targets as high as $45, suggesting Pinterest could nearly double in value over the next 12 months.

Read more at Yahoo Finance: Pinterest Is Laying Off 15% of Its Staff. Should You Buy, Sell, or Hold PINS Stock Here?