Is Pinterest's AI Strategy Creating Long-Term Value for Investors?

Pinterest, Inc. (PINS) is focusing on AI integration to make its platform smarter by improving content discovery, personalization, and ad performance. AI plays a key role in making Pinterest’s visual discovery engine more intuitive and relevant for users.The company deploys AI to study users' behavior and interests to recommend Pins and boards that match what they like, helping users easily discover ideas they care about, such as fashion, home décor, recipes, and shopping. PINS’ AI-powered visual search enables users to find similar items and shop directly by tapping on images instead of typing text. The company’s AI recommendation model not only improves personalization, but it also effectively anticipates emerging trends.By labeling and filtering AI-generated images, Pinterest is giving users more control over what they see, showing its focus on responsible and trustworthy AI use. Increased use of AI benefits PINS by improving user engagement and ad performance, which drives higher revenue growth and long-term profitability.Introduction of such intuitive features has steadily driven users to its platform over the past several quarters. In the third quarter of 2025, Pinterest reported a global monthly active user of 600 million users, registering 17% year-over-year growth. Such strong momentum is expected to continue in the upcoming quarters as well. Per our estimate, in 2025, Pinterest's monthly active users are expected to reach 615.1 million, indicating 11.2% growth year over yearHow Are Competitors Advancing in the AI Market?Pinterest faces competition from SNAP, Inc. (SNAP) and Meta Platforms, Inc. (META). Meta is using AI across its apps to increase user engagement and ad revenues by improving recommendations, creative tools, and personalized experiences for its billions of users worldwide. Meta has shifted its focus from the metaverse to AI by creating Meta Superintelligence Labs to build advanced AI products quickly. Meta recently announced that Meta AI will provide real-time news and content across its apps through partnerships with major media publishers like CNN and USA TODAY.SNAP is becoming a leader in mobile AI by using it in social interaction, search, creativity, AR, and shopping, making Snapchat more engaging for almost a billion users. SNAP uses AI tools to help advertisers run better campaigns and let users create more engaging content. AI tools like My AI and AI Lenses powered by Snapchat provide users with more than 500 million to chat, get information, and create or edit images and videos directly in the app.PINS’ Price Performance, Valuation & EstimatesPinterest shares have lost 11.6% over the past year against the industry’s growth of 6.9%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, Pinterest trades at a forward price-to-sales ratio of 3.66, below the industry tally of 4.87.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Pinterest’s earnings for 2025 has declined 8% to $1.62, and the estimate for 2026 has decreased 8.3% to $1.88 over the past 60 days.Image Source: Zacks Investment ResearchPinterest currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snap Inc. (SNAP): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks