Can Pinterest’s (PINS) Global Expansion Offset Cautious Guidance and Tariff Headwinds?

• In its third-quarter 2025 results announced earlier this month, Pinterest reported revenue of US$1.05 billion and net income of US$92.11 million, both rising from the prior year but missing analyst estimates, with management also citing tariffs’ impact on ad spending as a reason for cautious fourth-quarter guidance.
• Despite these pressures, Pinterest highlighted robust international user growth and progress in rolling out new AI-powered shopping tools, aiming to deepen engagement and expand revenue streams globally.
• We’ll explore how Pinterest’s cautious fourth-quarter outlook, influenced by tariffs affecting retailer ad budgets, interacts with its broader investment narrative.

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Pinterest Investment Narrative Recap

To own Pinterest stock, shareholders need to believe in its ability to drive higher monetization from a growing global user base and capitalize on advances in AI-powered visual search and shopping. The latest quarterly update, while showing solid growth, underscores that the pace of international ARPU improvement and resilience in ad pricing remain crucial short-term catalysts, yet these appear largely intact for now, even as tariffs pressure retailer ad budgets and temper guidance.

Pinterest’s recent share repurchase, totaling over 5.6 million shares in the quarter for nearly US$200 million, is the latest in its buyback program and highlights the board’s continued support for returning capital to shareholders. This activity comes amid mixed signals from recent performance but points to management’s confidence in the company’s fundamentals alongside long-term growth catalysts like improved ad tools and e-commerce integrations.

However, with international ad prices still trailing those in the US and Canada, investors should be mindful that if this monetization gap does not close fast enough…

Read the full narrative on Pinterest (it’s free!)

Pinterest’s outlook anticipates $5.9 billion in revenue and $1.0 billion in earnings by 2028. This scenario is based on a 14.6% annual revenue growth rate, but a decrease in earnings of $0.9 billion from the current $1.9 billion.

Uncover how Pinterest’s forecasts yield a $40.91 fair value, a 50% upside to its current price.

Exploring Other Perspectives

Sixteen fair value estimates from the Simply Wall St Community for Pinterest range from US$32.65 to US$55.27 per share. While the community sees significant upside, many also stress that further improvement in international monetization is key to unlocking long-term value, so be sure to consider alternative viewpoints.

Explore 16 other fair value estimates on Pinterest – why the stock might be worth just $32.65!

Build Your Own Pinterest Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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