Pinterest (PINS) Stock Plunges 69%: Why Wall Street Still Sees Recovery Potential
Key Takeaways
- Pinterest stock has plummeted 69% from its peak, currently hovering around $20.29 per share
- First quarter revenue climbed to $1.01 billion, representing 17.8% annual growth and exceeding Wall Street projections
- User base expanded to 631 million monthly actives with improving monetization metrics
- Wall Street consensus stands at “Hold” with analysts setting a mean price objective of $27.40
- Elliott Management maintains a significant $1 billion stake; current EV/EBITDA valuation of 7.5x trails industry comparables
Shares of Pinterest (PINS) have endured a brutal 12-month decline of 69%, leaving the stock languishing near the $20 mark as the social media platform struggles to meet investor expectations for accelerated revenue expansion.
Pinterest, Inc., PINS
The downturn has been severe. Yet the company’s latest quarterly performance offers a glimmer of hope for shareholders.
PINS began Friday’s session at $20.29. The shares have traded between $13.84 and $39.93 over the trailing twelve months. The 50-day simple moving average currently rests at $20.19.
The company’s first-quarter financial release on May 4th revealed earnings per share of $0.27 — surpassing analyst expectations of $0.22 by five cents. Total revenue reached $1.01 billion, exceeding the Street’s $965.84 million forecast while posting 17.8% year-over-year expansion.
The platform’s monthly active user count climbed to 631 million, while average revenue per user continues its upward trajectory as advertising expenditures migrate to the service. Management credits its enhanced advertising technology suite and Performance+ tracking system as primary catalysts.
The growth journey hasn’t been without turbulence. Reduced marketing budgets from food and beverage advertisers, coupled with revenue headwinds in Canada stemming from tariff-related economic uncertainty, have periodically dampened performance.
Signs of Revenue Momentum Stabilization
Between the first quarter of 2024 and the corresponding period in 2025, Pinterest’s revenue growth averaged 16% annually. The low point registered at 13% during early 2024. Following that trough, growth rates have demonstrated greater consistency.
Evercore analyst Mark Mahaney characterized the Q1 performance as “an encouraging early proof point” that leadership’s initiatives — expanding revenue sources while accelerating Performance+ integration — are “starting to translate into tangible results.”
Pinterest has exceeded revenue projections in seven of its last nine quarterly reports. The two instances where the company fell short involved margins of less than 1%.
Current analyst coverage includes sixteen Buy recommendations, eighteen Hold ratings, and a single Sell designation. The consensus twelve-month price target stands at $27.40.
Morgan Stanley elevated its price objective from $27 to $30 while reaffirming an Overweight stance. TD Cowen increased its target from $36 to $38 alongside a Buy rating. Robert W. Baird adjusted its forecast from $20 to $24 while maintaining Neutral positioning.
Street projections anticipate earnings growth will modestly outpace revenue expansion over the coming three years, with operating margins expected to surpass 32% by 2029.
Valuation Metrics and Institutional Activity
Trading at 7.5x enterprise value to EBITDA, Pinterest’s valuation represents approximately half the S&P 500’s average multiple and falls below competitors like Etsy and eBay, both commanding multiples exceeding 10x.
Pacer Advisors expanded its holdings by 32.9% during the fourth quarter, accumulating 2,951,421 shares worth $76.4 million. Institutional ownership accounts for 88.81% of outstanding shares.
Elliott Management — the activist investment firm led by Paul Singer — established a $1 billion position in Pinterest during early 2023. Elliott has previously generated returns from distressed investments including Southwest Airlines and Dexcom.
Corporate insiders have divested 171,112 shares during the past ninety days, totaling roughly $3.6 million. On May 29th, insider Wanjiku Juanita Walcott sold 27,337 shares at $20.46 each. All transactions occurred under pre-established Rule 10b5-1 trading arrangements.
Sell-side analysts currently project Pinterest will deliver $0.65 in full-year earnings per share.
The post Pinterest (PINS) Stock Plunges 69%: Why Wall Street Still Sees Recovery Potential appeared first on Blockonomi.
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