Pinterest (PINS): Assessing Valuation After a Recent Share Price Slide

Pinterest (PINS) has quietly slid almost 29% over the past 3 months and about 15% over the past year, raising a fair question for investors: is this weakness an opening or a warning? See our latest analysis for Pinterest. That slide has come even as Pinterest continues to push deeper into shopping features and AI driven discovery tools. This suggests the recent 90 day share price return of minus 28.9 percent reflects fading momentum more than a broken long term story, especially with a three year total shareholder return still in positive territory. With sentiment on Pinterest wobbling, it can be useful to compare it against other high growth tech names. Consider exploring high growth tech and AI stocks for fresh ideas. With revenue still growing double digits and Wall Street targets sitting well above today’s price, is Pinterest quietly trading at a meaningful discount, or has the market already baked in its next leg of growth? Most Popular Narrative: 30.9% Undervalued With Pinterest last closing at $25.76 against a narrative fair value near the high 30s, the current discount hinges on how durable its growth engine really is. Ongoing advancements in AI driven visual search and personalized content curation, supported by proprietary multimodal and generative retrieval models, are deepening user engagement and increasing session times, which should drive higher average revenue per user (ARPU) and lift both revenue and margins over time. Read the complete narrative. Curious how this engagement story translates into a higher valuation? The narrative focuses on faster top line expansion, resilient margins, and a richer earnings multiple. Want to see how those moving parts stack up into that fair value call? Result: Fair Value of $37.28 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, softer ad pricing and intensifying competition from Meta, Google, and TikTok could compress margins and derail the optimistic earnings trajectory that underpins this valuation. Find out about the key risks to this Pinterest narrative. Build Your Own Pinterest Narrative If you see the story differently or want to dig into the numbers yourself, you can build a personalized Pinterest thesis in just a few minutes: Do it your way. A great starting point for your Pinterest research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas beyond Pinterest? Do not stop with one opportunity. Use the Simply Wall Street Screener to pinpoint fresh, data backed stocks that could sharpen your next move and potential future returns. Capture potential bargains by scanning these 906 undervalued stocks based on cash flows that the market may be overlooking despite strong cash flow support. Target income focused opportunities by reviewing these 13 dividend stocks with yields > 3% offering yields above 3 percent with room for sustainable payouts. Position yourself ahead of digital finance trends by assessing these 80 cryptocurrency and blockchain stocks riding growth in blockchain infrastructure and services. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech