Pinterest (PINS) Stock Forecast & Price Target

Pinterest's financial performance indicates a strong and positive outlook, as evidenced by a 24% year-over-year increase in Adj. EBITDA, reaching $306 million, which exceeded previous estimates. The platform also reported a 17% year-over-year growth in sales for 3Q25, totaling $1,049 million, aligning with guidance expectations while showing promising user engagement metrics, including an increase in monthly active users to 600 million, surpassing projections. Furthermore, the impressive growth in impressions, rising 54% year-over-year, highlights the effectiveness of Pinterest's strategy to leverage AI to enhance ad-driven content and user engagement, supporting its long-term sales growth aspirations.

The analysis indicates a negative outlook on Pinterest's stock due to a decline in user growth expectations, with projections showing a sequential step-down in U.S./Canada growth rates from 16% to 8% over the next year. Additionally, there has been a downward revision in revenue forecasts, with anticipated fourth-quarter revenue adjusted to $1.3 billion, reflecting a decrease from earlier estimates, alongside a drop in EBITDA margin to 40.9%. Overall, the company is expected to generate total revenue of $4.2 billion for the year, which is approximately $10 million lower than initial projections, contributing to a substantial decline in share price following recent earnings.