Key Stats for Pinterest Stock
- Pre-Market Price change for Pinterest stock today: -9%
- $PINS Stock Price as of Aug. 4: $26
- 52-Week High: $40
- $PINS Stock Price Target: $28
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Pinterest (PINS) stock dropped even though the company beat estimates on nearly every key number.
Revenue grew 18% year-over-year to $1.18 billion and topped forecasts of $1.15 billion,
Earnings per share stood at $0.43, beating expectations of $0.36. User growth came in ahead of estimates too.
Adjusted EBITDA of $311 million also beat the $270 million analysts were looking for. CEO Bill Ready said the results “reflect the scale and strength of our platform.”
So why did Pinterest stock fall? The problem was guidance. Q3 revenue guidance of $1.19 billion to $1.21 billion landed right at the midpoint of what analysts expected, not above it, which was a letdown after such a strong quarter.
CFO Julia Donnelly explained some of the reasons behind the softer outlook. Amazon’s Prime Day shifted from Q3 last year into Q2 this year, giving Q2 a small boost of about half a point but creating a similar-sized headwind for Q3.
On top of that, World Cup-related ad spending gave Q2 nearly a full-point benefit that won’t repeat in the current quarter.
Global average revenue per user came in at $1.86, ahead of projections, and users grew across every region the company tracks.
On the call, Ready also discussed Pinterest’s use of open-weight AI models, which the company uses alongside its own proprietary models to keep costs down.
He said companies not using open-source models today are “almost certainly wasting a lot of their shareholders’ money,” pointing to how much cheaper and more secure these tools have become through major cloud providers.
Donnelly added that Pinterest uses what she called “model routing infrastructure” to manage AI costs, saving more expensive models for complex tasks while using cheaper ones for routine work.
She did caution that AI-related compute and spending will keep growing as adoption increases, though she said the company views those investments as ROI positive and has already built that spending into its outlook.
See analysts’ growth forecasts and price targets for Pinterest stock (It’s free) >>>
What the Market Is Telling Us About Pinterest Stock
The market’s reaction shows that a beat alone isn’t always enough. Investors care just as much about what’s coming next, and an in-line Q3 guide after such strong Q2 numbers reads as a disappointment.
The specific, one-time factors behind the guidance, like Prime Day timing and the World Cup, suggest this may be more of a temporary blip than a sign of slowing demand.
Still, with Pinterest stock reacting so sharply to guidance rather than results, it’s clear the market wanted more confirmation that this growth pace can continue into the back half of the year.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Pinterest Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
