Pinterest Experiences Strong ARPU Growth: Can the Momentum Persist?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy PINS?
Source: NASDAQ.COM
Pinterest's Revenue Growth: Pinterest reported a global average revenue per user (ARPU) of $1.78 in Q3, up from $1.70 year-over-year, with significant increases in Europe (31%) and the Rest of World (44%). The company has 600 million active users, with Gen Z being the fastest-growing demographic.
AI Investments and User Engagement: The company has heavily invested in AI to enhance personalization and visual search capabilities, leading to a 44% increase in queries year-over-year. AI tools for advertisers have also been introduced to improve user targeting.
Competitive Landscape: Pinterest faces competition from Reddit and Snap, with Reddit's ARPU growing 41% and Snap's ARPU increasing 2% year-over-year. Despite its growth, Pinterest's stock has declined 12.8% over the past year, contrasting with the industry's overall growth of 4.9%.
Valuation and Earnings Outlook: Pinterest trades at a forward price-to-sales ratio of 3.62, below the industry average, and its earnings estimates for 2025 have decreased over the past 60 days, resulting in a Zacks Rank of #4 (Sell).
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Analyst Views on PINS
Wall Street analysts forecast PINS stock price to rise
24 Analyst Rating
18 Buy
6 Hold
0 Sell
Strong Buy
Current: 18.540
Low
30.00
Averages
38.41
High
50.00
Current: 18.540
Low
30.00
Averages
38.41
High
50.00
About PINS
Pinterest, Inc. (Pinterest) offers visual search and discovery platform. The Company’s primary service, Pinterest, can be accessed through its mobile application or the Web. People use Pinterest to find ideas. As they browse Pinterest content, Pins, they fine-tune their tastes and find the idea. Users interact with the platform in multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from brands. It has approximately 553 million monthly active users across the world. Content on Pinterest comes from a variety of sources, including retailers, brands, creators, publishers and users. It acquires that content via a range of methods, including product catalog uploads, direct publishing, and user curation. Content formats include images that allow the user to click into an idea to learn more, videos that provide the steps of an idea, and products that brands and merchants upload from catalogs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Delivery Outlook: Tri Pointe expects to deliver between 1,200 and 1,400 homes in Q4, demonstrating stable delivery capabilities in the current market environment, which enhances its attractiveness to investors.
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- Sales Outlook Downgrade: The company projected first-quarter sales between $951 million and $971 million, falling short of analysts' estimates of $980 million, suggesting pressure on future revenue growth that may affect investor confidence.
- Analyst Downgrades: Multiple Wall Street firms downgraded Pinterest's stock or reduced target prices following the earnings report, with concerns including decelerating growth, monetization challenges, and intensified competition due to advancements in AI.
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