Pinterest

PINS

Market cap $17.6B

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

TSMC is one of the companies best positioned to benefit from the AI infrastructure buildout. Pinterest is seeing solid growth as it transforms itself into a shopping discovery platform.

Zacks.com users have recently been watching Pinterest (PINS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Pinterest shows steady user growth and mid-teens revenue expansion, outperforming peers during downturns, driven by intent-based engagement and high ROI ad conversions, particularly in performance and commerce campaigns. Emerging markets and Europe offer significant upside; AI enhancements, Gen Z adoption, and visual discovery can improve ARPU and monetization in underpenetrated regions. Free cash flow margins exceed 25%, reflecting asset-light operations and scalable growth; AI-driven ad targeting can boost efficiency without major cost increases.

The rise of artificial intelligence has distorted stock market valuations, pulling them far from underlying fundamentals.

Pinterest (PINS 0.68%) stock is falling after the company reported quarterly financial results.

Pinterest (PINS 0.55%) stock investors are concerned about its ability to retain budgets from advertisers who are facing headwinds.

Celestica's surging growth, stronger valuation and outperforming stock price make it the more compelling pick over its digital rival.

Investors looking for growth stock momentum in a challenging macroeconomic environment may want to focus on companies showing consistent revenue gains. As the broader economy presents challenges to everyday consumers, sending sentiment to multi-year lows, firms that are still winning at sales stand out.

Pinterest is now valued as a value stock despite strong revenue and earnings growth, a net cash balance sheet, and aggressive share repurchases. PINS trades at just 13x forward earnings, with double-digit growth expected, and pessimism appears overdone given its profitability and ongoing buybacks. While PINS underperforms Meta Platforms, international monetization and margin expansion offer upside, with 12%-18% annual returns projected over five years.