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Pinterest (PINS) Could Be 35% Undervalued As Strong Earnings Trigger A Selloff

Simply Wall St · 2d ago

Pinterest (PINS) surprised the market with Q2 revenue of US$1.18b and stronger EBITDA guidance, yet the share price dropped sharply after the release as expectations reset.

The sharp post earnings reset has come on top of already weak momentum, with Pinterest’s share price down 22% over the past month and the year to date share price return down 29.4%. Meanwhile, the 1 year total shareholder return has fallen 48.3%, pointing to fading confidence rather than a sudden shift in fundamentals.

Scan how other beaten down opportunities compare to Pinterest's reset by running your eye over our hand picked 34 high quality undervalued stocks. These are now moving on very different timelines than recent sentiment suggests.

Pinterest now trades at a steep discount to both intrinsic estimates and analyst targets after this reset. Is the market prudently fading the story, or is it marking the stock down too far on caution alone?

Most Popular Narrative: 35.3% Undervalued

On Simply Wall St’s most followed narrative, Pinterest’s fair value sits at about $28.99 against a last close of $18.76. This frames the recent selloff as more than just a short term mood swing.

Ongoing advancements in AI-driven visual search and personalized content curation, supported by proprietary multimodal and generative retrieval models, are deepening user engagement and increasing session times, which should drive higher average revenue per user (ARPU) and lift both revenue and margins over time.

See why 108 investors see Pinterest as 35% undervalued.

Result: Fair Value of $28.99 (UNDERVALUED)

Still, that AI heavy roadmap carries real risk if ad pricing stays soft or international monetization lags, which could compress margins and blunt Pinterest’s valuation case.

Find out about the key risks to this Pinterest narrative.

Another View On Pinterest’s Valuation

On the flip side of that fair value estimate, Pinterest trades on a P/E of 42.7x versus a fair ratio of 28.8x, the US Interactive Media and Services average of 12.9x, and a peer average of 22.6x. That is a rich setup if growth or margins disappoint from here.

See what the numbers say about this price in our valuation breakdown, then decide which story you think the market is likely to move toward next, See what the numbers say about this price — find out in our valuation breakdown.

NYSE:PINS P/E Ratio as at Sep 2026
NYSE:PINS P/E Ratio as at Sep 2026

Next Steps

Conflicted on whether Pinterest's reset is justified or overdone, and want to move beyond headlines? Start by weighing both sides of the story with 2 key rewards and 2 important warning signs.

Looking for more ideas beyond Pinterest?

If Pinterest has you rethinking where you want your cash working hardest, widen the lens and let a few focused stock shortlists do the heavy lifting.

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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. 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.