Pinterest's stock fell 4.05% as it hit a 20-day low, reflecting investor concerns following the announcement of significant layoffs and restructuring plans.
The company plans to lay off less than 15% of its workforce, with pre-tax restructuring charges expected to be between $35 million and $45 million. This move aims to optimize operational efficiency and focus on AI-driven roles, although it may negatively impact employee morale and productivity. The restructuring is anticipated to be completed by the end of Q3, amidst a backdrop of declining market performance and analyst concerns about future growth.
This restructuring plan highlights Pinterest's strategic pivot towards artificial intelligence, which could enhance its competitiveness in the advertising market. However, the immediate financial implications and potential impact on company culture raise questions about the effectiveness of this strategy in the short term.
Wall Street analysts forecast PINS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PINS is 38.41 USD with a low forecast of 30.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
Wall Street analysts forecast PINS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PINS is 38.41 USD with a low forecast of 30.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Buy
6 Hold
0 Sell
Strong Buy
Current: 22.560
Low
30.00
Averages
38.41
High
50.00
Current: 22.560
Low
30.00
Averages
38.41
High
50.00
BofA
Buy
maintain
$39
2026-01-27
New
Reason
BofA
Price Target
$39
AI Analysis
2026-01-27
New
maintain
Buy
Reason
After Pinterest announced plans to reduce up to 15% of its workforce, alongside reductions in office space, in an 8-K filing this morning, BofA said the announcement suggests tariff-related pressure on ad spend has likely continued into Q1. However, the reduction could enable Pinterest to maintain a margin growth trajectory toward low-30s EBITDA margins, says the analyst, who estimates that the announced cost actions could drive up to about $300M annualized of savings. The firm maintains a Buy rating and $39 price target on Pinterest shares.
UBS
Buy
downgrade
$48 -> $40
2026-01-20
Reason
UBS
Price Target
$48 -> $40
2026-01-20
downgrade
Buy
Reason
UBS lowered the firm's price target on Pinterest to $40 from $48 and keeps a Buy rating on the shares. The Q4 earnings outlook for advertising-driven companies points to slimmer beats after a slow October tied to a government shutdown, followed by a rebound in November and December, the analyst tells investors in a research note. Among nine companies, five exceeded prior forecasts, two were in line, and two came in modestly below expectations, UBS says.
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Wolfe Research
Shweta Khajuria
Outperform
downgrade
$36 -> $33
2026-01-05
Reason
Wolfe Research
Shweta Khajuria
Price Target
$36 -> $33
2026-01-05
downgrade
Outperform
Reason
Wolfe Research analyst Shweta Khajuria lowered the firm's price target on Pinterest to $33 from $36 and keeps an Outperform rating on the shares. 2026 could be another positive year for Internet stocks, though maybe not as much outperformance as the prior three years given current, elevated multiples for some of the firm's coverage, the analyst tells investors in a research note. The firm added that it sees opportunities for estimates upside driven by AI developments and product catalysts, a relatively healthy macro backdrop, successful capital allocation, and pockets of re-rating potential.
Wedbush
Outperform -> Neutral
downgrade
$34 -> $30
2025-12-08
Reason
Wedbush
Price Target
$34 -> $30
2025-12-08
downgrade
Outperform -> Neutral
Reason
Wedbush earlier today downgraded Pinterest to Neutral from Outperform with a price target of $30, down from $34. The company reported "mixed" Q3 results and its outlook assumes a "less constructive range of outcomes" for the platform given macro uncertainty and tariff implications, the analyst tells investors in a research note. The firm thinks investors are also increasingly contemplating risks from rising consumer adoption of competing agentic commerce. It believes Pinterest in track to hit the lower end of its intermediate-term target and that the stock's valuation is more balanced at current levels. Wedbush sees limited visibility into catalysts that could meaningfully reaccelerate Pinterest's growth.
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.
