Key Takeaways
- Pinterest shares fell 7% today, along with Reddit, after Snap reported 4% ad growth during a broad tech selloff.
- Snap’s sluggish ad sales echo Pinterest’s report last week, when ad prices fell 4% and its fourth-quarter guide missed estimates.
- Meta grew revenue 26% and Reddit 53%, so the ad slowdown looks specific to Pinterest and Snap.
- Pinterest trades far below its usual forward P/E, but until its ad prices turn back up, the discount looks deserved.
Pinterest (PINS) stock is down 7% today after Snap said its third-quarter ad revenue grew just 4%.
The selling is broad: Reddit (RDDT) is off 9%, and Meta Platforms (META) is down 4%. But Snap’s quarter reads a lot like Pinterest’s own.
Snap’s quarter sounds familiar
Snap’s revenue rose 14% to $1.72 billion, but advertising grew only 4%.
Pinterest’s Oct. 29 report looked similar. Revenue rose 12% to $1.17 billion, and ad prices fell 4%. Its fourth-quarter guide of $1.425 billion-$1.475 billion came in below the roughly $1.52 billion analysts expected.
Meta keeps raising its prices
Meta’s third-quarter revenue rose 26% to $64.6 billion, and its average price per ad rose 14%. My read: ad budgets are pooling at the biggest platform.
Reddit is the exception among the smaller players: its third-quarter revenue rose 53% to $895 million. But its daily active uniques held at 130.3 million from the second quarter, and its fourth-quarter guide fell short of Wall Street’s estimates. Its next report will show whether flat users start to slow its ad growth.
Analysts already expect slower growth
Analysts see Pinterest’s revenue growth slowing from 16% in 2025 to about 12% a year in 2027 and 2028:
They trimmed their 2027 estimate to $5.41 billion from $5.55 billion after last week’s report. Nothing in Snap’s report is about Pinterest’s own business, so I wouldn’t expect another round of cuts from it.
TIKR tracks 38 analysts on Pinterest. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Pinterest, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Pinterest’s Analyst Ratings
Cheap for a reason
Pinterest traded at 9.2x forward earnings at the last close, against a five-year average of 23.7x:
At today’s price, it’s even lower. But stock pay of $288 million took nearly all of the third quarter’s $300 million of free cash flow, so the discount isn’t as deep as it looks.
The way I see it, today’s drop is mostly the market, but investors are right to link Pinterest to Snap. Until Pinterest’s ad prices turn back up, I’d expect the stock to trade like a company losing ground to Meta. Its fourth-quarter report in early February, with its first 2027 outlook, is the next chance to change that.
So what is Pinterest stock actually worth?
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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 of the stocks mentioned. Thank you for reading, and happy investing!
