Pinterest, Inc. (PINS): A Bull Case Theory

We came across a bullish thesis on Pinterest, Inc. on Investing With Purpose’s Substack. In this article, we will summarize the bulls’ thesis on PINS. Pinterest, Inc.’s share was trading at $27.57 as of January 13th. PINS’s trailing and forward P/E were 9.67 and 13.24, respectively according to Yahoo Finance.

Pinterest (PINS) is currently positioned in an attractive asymmetry window where a suppressed valuation meets strengthening fundamentals and an AI-driven strategic pivot. Despite a recent stock drawdown following a conservative guidance reset, the company continues to deliver robust results, including record global monthly active users (MAUs) of 600 million and over $1 billion in annual free cash flow.

This financial strength is underpinned by an 80% gross margin profile and a net-cash balance sheet with approximately $2.47 billion in liquidity, effectively de-risking the company from a credit perspective.

The core investment thesis centers on Pinterest’s evolution from a visual discovery app into an AI-powered shopping and performance-advertising powerhouse. This transition is evidenced by the adoption of the “Performance+” ad suite and a significant runway for international monetization, particularly in Europe and the Rest of World, where average revenue per user (ARPU) remains a fraction of U.S. levels.

From a valuation standpoint, Pinterest trades at a compelling discount compared to peers, with an EV/FCF multiple of roughly 14x and a P/E around 9x. This “prove-it” valuation creates meaningful upside potential as the market begins to recognize the company’s ability to convert record engagement into durable earnings growth.

Technical analysis supports this outlook, suggesting a durable support floor has formed in the $23–26 range, marking a transition from a late-stage downtrend into a constructive base. As Pinterest executes on its AI shopping assistant and closes the monetization gap between its global user base and its mature domestic market, the stock is primed for a significant rerating.

This combination of high-margin growth, disciplined capital management, and a cleared technical path offers a favorable risk/reward profile for investors seeking exposure to the intersection of social media and global e-commerce.

Previously, we covered a bullish thesis on Meta Platforms, Inc. by LongYield in May 2025, which highlighted the solid financial performance and strategic positioning as the company accelerates its pivot toward a generative AI-driven future. META’s stock price has appreciated approximately by 10.28% since our coverage. This is because the profitable advertising engine successfully funded long-term innovations despite regulatory and trade challenges. Investing With Purpose shares a similar but emphasizes Pinterest’s evolution from a visual discovery app into an AI-powered shopping and performance-advertising powerhouse with a suppressed valuation.

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Disclosure: None.