In this article, we will discuss the Top 5 Stock Picks of Billionaire Paul Singer. Please visit the Top 10 Stock Picks of Billionaire Paul Singer, if you would like to see the extended list and the methodology behind it.
5. Pinterest Inc. (NYSE:PINS)
Elliott’s Stake: $513,520,000
Pinterest Inc. (NYSE:PINS) is down about 24% year-to-date, as several issues continue to weigh on sentiment, including slowing advertising demand, intensifying competition from larger platforms, and weaker ad pricing in its core market.
However, bulls argue the weakness is already reflected in the stock. Global monthly active users (MAUs) rose about 12% year-over-year in Q4 to 619 million. In its key United States and Canada (UCAN) segment, monetization is supported by higher ad value, with average revenue per user (ARPU) increasing 4.5%. Engagement remains strong, with the platform generating over 80 billion monthly searches and 1.7 billion outbound clicks, reinforcing its role in visual discovery and shopping intent.
From a valuation perspective, the stock looks attractive. It trades at a forward P/E of 11.6x, compared with a broader social media and tech peer group average closer to the low-to-mid 20s. Analysts expect a revenue CAGR of about 13% through FY2028, with improving earnings growth as cost discipline and operating leverage kick in.
Lakehouse Global Growth Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its fourth quarter 2025 investor letter:
“Visual search and discovery platform, Pinterest, Inc. (NYSE:PINS), posted a solid quarterly result that was largely in line with expectations. Revenue grew 17% (16% constant currency) to $1.05 billion and adjusted EBITDA grew 24% to $306 million. Pleasingly, Pinterest’s revenue continues to be driven by a healthy mix of volume and price. The company’s monthly user count grew 12% to 600 million (the highest level of sequential growth in four years), while the firm’s average revenue per user increased 5% to $1.78. Pinterest also continues to make headway with its user shopping experience, and importantly monetising that experience, as the number of unique shopping SKUs with a paid ad impression more than doubled year-on-year.
Despite providing what we believed was a solid update, Pinterest’s stock sold off approximately 20% as management struck a cautious tone for 4Q guidance. Specifically, they noted they are seeing some “pockets of weakness” in North American ad spend as some of the largest retailers pulled back spend on tariff related margin pressure. In our view, these small “pockets of weakness” will prove to be temporary headwinds and we take comfort in management reiterating confidence in their mid-term targets – i.e. mid teens revenue growth and 30-34% EBITDA margins.
Big picture, we still view Pinterest as a differentiated, scaled platform with significant commercial intent that is well placed to capture incremental share of advertising budgets in the years ahead. Coupled with an attractive valuation of 14x earnings and over 12% of its market capitalisation in cash, we think the risk/reward is attractive.”
