Pinterest Inc

Pinterest, Inc. (Pinterest) (NYSE: PINS) offers visual search and discovery platform. The Company’s primary service, Pinterest, can be accessed through its mobile application or the Web. People use Pinterest to find ideas. As they browse Pinterest content, Pins, they fine-tune their tastes and find the idea. Users interact with the platform in multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from brands. 

Key Business and Financial Updates:

• Strong Third-Quarter Performance Driven by User Scale and Advertising Momentum: Pinterest reported a solid third quarter of fiscal 2025, delivering revenue of USD 1.05 billion, representing 17% year-over-year growth on a reported basis and 16% growth in constant currency terms. Performance was supported by continued engagement across the platform, with global monthly active users reaching an all-time high of 600 million, up 12% year over year. Management highlighted that ongoing investments in artificial intelligence and product innovation are strengthening Pinterest’s positioning as a visual discovery and shopping-oriented platform for both users and advertisers.
• Profitability Expansion and Strong Cash Flow Generation: Financial leverage improved meaningfully during the quarter, with GAAP net income rising to USD 92 million, compared with USD 31 million in the prior-year period, while adjusted EBITDA increased 24% year over year to USD 306 million, translating into a margin of 29%. Operating cash flow totaled USD 322 million, up 30% year over year, and free cash flow reached USD 318 million, underscoring the scalability of the business model and disciplined cost management alongside growth investments.
• Geographic Diversification and Monetization Progress: Revenue growth was broad-based geographically, with Europe and Rest of World segments significantly outperforming, posting growth of 41% and 66% year over year, respectively, while U.S. and Canada revenue grew 9%. User growth was similarly diversified, led by Rest of World MAUs, which increased 16%. Average revenue per user improved across all regions, with particularly strong ARPU expansion in Europe (+31%) and Rest of World (+44%), reflecting improving monetization as advertiser adoption deepens outside Pinterest’s core North American market.
• Forward Outlook Supported by Advertising Demand and AI Investments: Looking ahead, Pinterest guided for fourth-quarter 2025 revenue in the range of USD 1.31–1.34 billion, implying 14%–16% year-over-year growth, with adjusted EBITDA expected between USD 533 million and USD 558 million. Management expects continued benefits from AI-driven product enhancements, expanding international monetization, and growing advertiser reliance on Pinterest as a performance-oriented discovery and shopping platform, supporting sustained revenue growth and profitability into the next quarter.

Key Risks for Pinterest (NYSE: PINS):

• Advertising Demand and Macro Sensitivity Risk: Pinterest’s revenue remains heavily dependent on digital advertising spend, which is inherently cyclical and sensitive to macroeconomic conditions; a slowdown in global ad budgets or reduced performance marketing spend could materially pressure revenue growth, particularly in international markets where monetization is still scaling.
• Monetization Execution Risk Outside Core Markets: While user growth is strongest in Europe and Rest of World regions, ARPU levels in these geographies remain significantly below U.S. and Canada; failure to sustainably improve international monetization without harming user engagement could limit long-term margin expansion and revenue leverage.
• Competitive and Platform Substitution Risk: Pinterest operates in a highly competitive ecosystem against large, well-capitalized platforms such as Meta, Google, and TikTok that are aggressively investing in AI-driven discovery, commerce, and advertising tools; increased competition or superior product innovation by peers could weaken advertiser demand, pricing power, and user engagement over time.

Technical Observation (on the daily chart):

• Trend and Structure: PINS remains in a short-term corrective phase, trading below its 21-day and 50-day moving averages, which continue to slope downward. This configuration signals persistent near-term weakness, with upside attempts facing selling pressure and the broader price action reflecting consolidation rather than trend resumption.
• Momentum and Participation: RSI in the low-40s indicates subdued momentum, suggesting selling pressure has eased but without evidence of renewed bullish strength. Volume patterns remain moderate, pointing to orderly profit-taking rather than panic-driven selling, while also highlighting limited conviction among buyers at current levels.
• Key Levels and Bias: Immediate support is located around USD 24–24.5, with stronger support near USD 23.5, while resistance is concentrated at USD 26.5–27.0 and more firmly near USD 28.5. Absent a decisive move above these resistance zones, the near-term technical bias remains neutral to mildly bearish, favoring range-bound price action.

Pinterest continues to demonstrate a compelling growth profile supported by expanding global user scale, improving monetization, and rising profitability, positioning the Company favorably despite near-term technical consolidation. In Q3 FY2025, Pinterest delivered revenue of USD 1.05 billion (+17% YoY), driven by an all-time high of 600 million monthly active users (+12% YoY) and accelerating advertiser adoption as AI investments enhance visual search, discovery, and shopping use cases. Profitability expanded meaningfully, with adjusted EBITDA reaching USD 306 million (29% margin) and free cash flow of USD 318 million, underscoring strong operating leverage and cash generation. Notably, international markets are emerging as a key upside lever, with Europe and Rest of World revenue growing 41% and 66% YoY, respectively, alongside sharp ARPU expansion, highlighting a long runway for monetization beyond North America. While the stock remains in a short-term corrective technical phase, the underlying fundamentals—scalable ad-driven economics, AI-led product differentiation, and improving global monetization—support a constructive medium-term outlook as Pinterest continues to evolve into a performance-oriented visual commerce platform.

As per the above-mentioned price action, important support near USD23.00- USD25.00, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given for Pinterest, Inc. (Pinterest) (NYSE: PINS), at the closing price of USD 26.02, as of December 23, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective, and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 23, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.