Pinterest: A Dip Worth Diving Into?

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Right, Pinterest. PINS +0.39% at last check. Honestly, the stock took a proper beating after their latest numbers dropped. Like, a proper, undignified tumble. It’s down over 40% year-to-date. Forty percent! You know, I’ve seen better returns from leaving cash under my mattress, and frankly, the mattress is more reliable. But let’s dig in, shall we? Because a disaster for some is, potentially, an opportunity for others. And I do love a good opportunity. Especially if it involves a bit of calculated risk. Don’t judge.

Tariffs and Tiny Pins

Apparently, the slowdown isn’t Pinterest’s fault entirely. They’re blaming tariffs. Tariffs! As if Pinterest single-handedly controls global trade policy. It’s a bit rich, isn’t it? They say large retailers, the ones who actually spend money on ads, are cutting back because of these tariffs. Pinterest, it turns out, is more exposed to this particular brand of retail pain than, say, Alphabet or Meta. Those giants deal with a million tiny merchants. Pinterest? More home furnishings. And let’s be honest, nobody’s redecorating with reckless abandon right now. Not unless they’ve won the lottery. Which, let’s face it, is most of us.

Q4 revenue was…fine. $1.32 billion. Pretty much in line with expectations, which, let’s be real, is corporate speak for “not amazing.” US and Canadian revenue nudged up 9% to $979 million. Europe did a bit better, soaring 25% to $245 million. And the “rest of the world” – bless them – jumped 64% to $96 million. They’re enthusiastic, if nothing else.

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Monthly active users (MAUs) grew to 619 million, a 12% increase. Again, not bad. The “rest of the world” is really carrying the weight here, up 16% to 356 million. Europe managed a respectable 9% increase to 158 million. But US and Canada? A measly 4% to 105 million. We’re losing interest, apparently. Or maybe we’re just pinning less and doomscrolling more. I know I am.

Average revenue per user (ARPU) edged up 2% to $2.16. But that’s a bit misleading, because Europe is doing well (up 15% to $1.59) and the “rest of the world” is…well, it’s up 42% to $0.27. Which sounds impressive until you realize it’s still only 27 cents. US and Canada, meanwhile, managed a 4% increase to $9.41. Steady, if uninspiring.

Adjusted EBITDA increased 15% to $541.5 million. Adjusted EPS climbed 30% to $0.67, just shy of the $0.69 consensus. Close, but no cigar. They’re getting there, slowly but surely. Or at least, they’re getting better at accounting.

Looking ahead, Pinterest is projecting Q1 revenue between $951 million and $971 million, representing 11% to 14% growth. But currency impacts will give them a 3% boost, so the organic growth is slower. And adjusted EBITDA is expected to be between $166 million and $186 million. It’s…fine. Everything’s just…fine.

Should You Pin Your Hopes on This Stock?

Okay, so Pinterest is facing headwinds. Tariffs, slowing growth in the US, the usual suspects. But they’re still growing. And they’re not just sitting around bemoaning their fate. They’re actually trying to improve the user experience and their ad platform with artificial intelligence. It’s a novel concept, I know. And both user counts and ARPU are on the upswing. Small steps, but steps nonetheless.

With the recent sell-off, the stock is incredibly cheap. A forward P/E ratio of around 8 times based on 2026 estimates, while still growing revenue and earnings at a double-digit clip. It feels…undervalued. Overdone, even. Honestly, I’d be a buyer at this price. A small one, mind you. I don’t believe in going all-in on anything. It’s just…sensible. And frankly, a little bit exciting. Don’t tell anyone I said that.

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2026-02-17 20:52