Key Takeaways:
- Pinterest operates as a leading visual discovery platform serving 578 million monthly active users globally through its unique combination of social, search, and commerce capabilities powered by AI-driven curation.
- PINS stock could reach $48/share by the end of 2027 and upwards of $79/share by 2030, based on our valuation assumptions driven by analysts’ estimates.
- This implies a total return in the next 2 years of 37% from today’s price of $35/share, with an annualized return of 14% over the next 2.4 years.
Pinterest (PINS) is a visual discovery platform that has transformed from a simple pinning service to a comprehensive shopping destination, leveraging its unique position at the intersection of social media, visual search, and e-commerce to serve millions of users with high commercial intent.
Through its diversified approach spanning upper-funnel brand awareness and lower-funnel performance advertising across multiple geographic markets, Pinterest has created a resilient advertising model that benefits from strong user engagement and sophisticated AI-powered recommendation systems.
PINS stock benefits from its market-leading position in visual search technology, proprietary multimodal AI models that outperform off-the-shelf alternatives by 30%, and the ability to capture users throughout their entire shopping journey from inspiration to purchase conversion.
With strategic initiatives including Performance+ automation suite, international expansion, enhanced measurement tools, and breakthrough visual search capabilities powered by proprietary AI models, Pinterest continues to strengthen its competitive moats while expanding advertiser performance across the marketing funnel.
With proven execution capabilities and strong Q2 results, where it grew sales by 17% to $998 million alongside record user engagement, PINS stock maintains its leadership position in the evolving visual discovery market while building scalable advertising solutions for long-term value creation.
Here’s why PINS stock could return 14% annually through 2027 as the company capitalizes on its unique visual search advantages and expands global monetization opportunities.
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What the Model Says for PINS Stock
We analyzed the upside potential for PINS stock using valuation assumptions based on its market-leading visual search position, successful Performance+ rollout, and ability to monetize its large international user base more effectively.
Based on estimates of 15% annual revenue growth, 12% operating margins, and normalized valuation multiples, the model projects PINS stock could rise from $35/share to $48/share.
That represents a 37% total return and a 14% annualized return over the next 2.4 years.
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for PINS stock:
1. Revenue Growth: 15.4%
Pinterest delivered strong Q2 results with total revenue growth of 17%, driven by robust performance across awareness and conversion objectives and continued strength in retail verticals.
PINS stock expects continued momentum from Performance+ adoption, international market expansion, where 80% of users generate only 20% of revenue, and emerging vertical penetration in financial services and technology.
We used a 15% forecast reflecting the company’s ability to maintain double-digit growth through improved advertiser performance, global monetization expansion, and successful AI-driven product innovations.
2. Operating Margins: 12%
Pinterest demonstrates strong margin expansion potential with Q2 adjusted EBITDA reaching $250 million and 25% margins, driven by revenue growth and expense discipline.
The company’s AI-powered automation tools, including 25% of code now generated by AI, are driving operational efficiency, while Performance+ suite improvements are enhancing advertiser value creation.
3. Exit P/E Multiple: 18x
PINS stock trades at reasonable multiples for a leading social commerce platform with unique visual search capabilities, strong user engagement metrics, and expanding international monetization opportunities.
We maintain current valuation levels given Pinterest’s market leadership in visual discovery, proprietary AI advantages, and long-term growth opportunities in global advertising markets.
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What Happens If Things Go Better or Worse?
Different scenarios for PINS stock through 2030 show varied outcomes based on turnaround execution success: (these are estimates, not guaranteed returns):
- Low Case: Slower international growth and macro headwinds → 12% annual returns
- Mid Case: Successful Performance+ scaling and steady expansion → 20% annual returns
- High Case: Strong international monetization and AI leadership → 28% annual returns
Even in the conservative case, Pinterest stock offers attractive double-digit returns supported by its unique visual search moat and engaged user base.
Based on these assumptions, Pinterest stock could reach a price of $79/share by 2030, which would be 125% upside from the stock’s current price of about $35/share.
At the same time, the upside scenario could deliver exceptional performance if international markets achieve higher monetization rates and AI innovations drive accelerated advertiser adoption.
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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 stocks mentioned. Thank you for reading, and happy investing!
