Pinterest Rides on Solid Customer Growth: Will the Uptrend Continue?

Pinterest, Inc. PINS has been witnessing steady customer growth across all regions in the last several quarters. In the first quarter of 2025, the company reported a global monthly active user (MAUs) of 570 million, which is an all-time record. The company’s unique approach of attracting users through discovery and inspiration sets it apart from other social media platforms and popular digital advertising channels.Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long run. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets. The company recently introduced AI-Powered Auto-Collages, which transform product catalogs into personalized and shoppable collages. The tool, powered by advanced AI, takes into account unique outfit ideas, user saves and product similarities to create a shoppable visual content that drives user engagement. Pinterest’s AI-enhanced trend tools allow advertisers to understand the emerging shopping trends. Leveraging such leading-edge AI innovations, advertisers can create, execute campaigns that target the intent-based shoppers with enhanced content personalization. A strong focus on innovation will likely drive customer engagement in the upcoming quarters.Per our estimate, MAUs from the United States and Canada are expected to reach 106 million, up 5% year over year in 2025. MAUs from Europe are approximated to be 158.8 million, indicating 9.5% year-over-year growth. From the rest of the world, MAUs are estimated at 343.8 million, implying a solid 12% uptick year over year in 2025.How Are Competitors Faring?Pinterest faces fierce competition in the digital advertising space from Meta Platforms, Inc. META and Snap, Inc. SNAP. Meta is utilizing AI to boost user engagement in Facebook, Instagram, WhatsApp and Messenger. By improving its AI recommendation engine, the company has increased users’ time spent on Facebook by 7% and on Instagram by 6%. During the first quarter of 2025, META has registered a Family Daily Active People of 3.43 billion, up 5.9% year over year.Snap has been steadily adding interactive features to make the Snapchat platform more attractive to users and advertisers. It has become the most preferred social networking medium among Millennials and Gen Z. In the first quarter of 2025, Snap’s global community reached 460 million daily active users (“DAU”), up 9% year over year. North America’s DAU was 99 million, which decreased 1% year over year. Europe’s DAU was 99 million, up 3.1% year over year. Rest of the world’s DAU was 262 million at the end of the reported quarter, which jumped 15.9% year over year.PINS’ Price Performance, Valuation and EstimatesShares of Pinterest have declined 20.3% in past year against the Internet - Software industry’s growth of 38.6%.Image Source: Zacks Investment ResearchGoing by the price/sales ratio, the company’s shares currently trade at 5.37 forward sales, lower than the industry. It carries a Value Score of D.Image Source: Zacks Investment ResearchPinterest is currently witnessing an uptrend in the estimate revisions. PINS’ earnings estimates for 2025 have moved up 2.22% to $1.84 per share over the past 60 days, while the same for 2026 has increased 2.9% to $2.13.Image Source: Zacks Investment ResearchPinterest currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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