Pinterest, Inc. (NYSE:PINS) is one of the stocks Jim Cramer put under the spotlight. A caller asked if they are wrong to start a position in the stock, given that the year of magical investing is over and tech is out of favor. In response, Cramer said: “No… you read my mind. I’ve been telling people that they have so much that’s great in Pinterest… by the way, that they could… I think these large language models should be just combing right through it. I think this is a tremendous level to start buying Pi ...

Core Insights - Pinterest, Inc. (PINS) has experienced a decline of 16.6% over the past six months, underperforming the industry growth of 5.5% and peers like Snap Inc. (SNAP) and Meta Platforms, Inc. (META) [1][7] Financial Performance - Total costs and expenses for Pinterest increased to $990.6 million in Q3 2025 from $904.3 million in the same quarter last year, driven by headcount growth, higher R&D, and increased marketing and administrative expenses [4] - Earnings estimates for Pinterest have decreased, with 2025 estimates down 6.7% to $1.66 and 2026 estimates down 14.2% to $1.93, indicating bearish investor sentiment [8] Competitive Landscape - Pinterest faces significant competition from larger companies such as Amazon, Facebook, Google, Snap, and Twitter, as well as smaller firms like Allrecipes, Houzz, and Tastemade [5] Valuation Metrics - Pinterest's shares currently trade at a price/sales ratio of 3.92, which is lower than the industry average of 5.04 and below its historical mean of 5.51, suggesting it may be undervalued [10] Growth Initiatives - Pinterest is focusing on enhancing user engagement through actionable content and has seen improvements in engagement metrics across various regions [13] - The company is leveraging AI to improve relevancy and personalization, which is expected to yield long-term benefits [14] - Pinterest's acquisition of The Yes aims to enhance its shopping experience and align with user preferences [15] Market Opportunities - Pinterest is exploring monetization opportunities in unmonetized international markets through third-party ad integration with Google [16]

Core Insights - Pinterest's stock experienced a significant decline of 20% following an earnings report that surprised the market, indicating volatility in investor sentiment [1] - Despite the drop, analysts maintain a positive outlook on Pinterest's long-term growth potential, suggesting that the current situation may represent a misunderstood investment opportunity [1] - The company has reported record-high user engagement, which is a critical factor for future growth and profitability [1] Financial Performance - The earnings report that led to the stock decline was unexpected, highlighting potential discrepancies between market expectations and actual performance [1] - Analysts are forecasting bullish growth for Pinterest, indicating confidence in the company's ability to rebound and capitalize on user engagement trends [1] Market Sentiment - The drastic stock price movement reflects a broader market reaction, but analysts believe that the fundamentals of Pinterest remain strong [1] - The situation is characterized as a potential buying opportunity for investors who can look beyond short-term fluctuations [1]

Core Insights - Pinterest Inc. experienced a significant decline in stock price, dropping 21.76% to close at $25.75, nearing its 52-week low after missing earnings estimates [1][3] - The company reported a net income increase of 201% year-on-year, reaching $92.1 million compared to $30.5 million in the same period last year [2] - Revenue for the third quarter rose by 17% to $1.049 billion, up from $898 million year-on-year [3] Financial Performance - Earnings per share for Pinterest in the third quarter were $0.38, falling short of analyst expectations of $0.42 [1] - The company anticipates fourth-quarter revenues between $1.313 billion and $1.338 billion, indicating a year-on-year growth of 14% to 16% [5] - Adjusted EBITDA for Q4 2025 is expected to range from $533 million to $558 million [5] Strategic Initiatives - Pinterest's CEO highlighted the success of investments in AI and product innovation, positioning the platform as a leader in visual search and an AI-powered shopping assistant for 600 million consumers [4] - The company is increasingly becoming a preferred platform for global advertisers to reach customers and drive sales [4]

Core Insights - Pinterest's stock has experienced a decline of over 16% due to a weaker revenue forecast for the upcoming holiday quarter, which is typically the company's strongest period [1] Group 1: Company Performance - The revenue forecast for Pinterest has been downgraded, indicating potential challenges in achieving expected financial performance during the holiday season [1] - The holiday quarter is traditionally a critical time for Pinterest, as it usually sees increased shopping activity [1] Group 2: Market Reaction - The significant drop in stock price reflects investor concerns regarding the company's ability to capitalize on the holiday shopping season [1]

Core Insights - Financial institutions are showing a bullish sentiment towards Pinterest, with 52% of traders being bullish and 43% bearish, indicating a potential upward trend in the stock [1] - The major market movers are focusing on a price range between $28.0 and $40.0 for Pinterest over the last three months, suggesting a defined trading corridor [2] - The average open interest for Pinterest options is 8,214.6, with a total trading volume of 108,597, indicating active trading interest [3] Options Activity - The largest options trades observed include multiple bullish call options, with significant total trade prices such as $134.6K for a call expiring on 01/16/26 at a strike price of $35.00 [8] - The options activity reflects a mix of bullish and bearish sentiments, with notable trades indicating both confidence and caution among traders [8] Company Overview - Pinterest is a social media platform focused on product and idea discovery, boasting over 500 million monthly active users, predominantly female [9] - The company generates revenue primarily through digital ads, with a significant portion coming from North American users [9] Expert Ratings - Recent expert ratings suggest an average target price of $50.5 for Pinterest, with one analyst maintaining a Buy rating and another lowering its rating to Outperform with a target of $50 [11][12] Current Market Position - As of the latest trading session, Pinterest's stock price is $31.7, reflecting a decrease of 1.77%, with earnings announcements expected in 23 days [14]

Core Insights - Pinterest has experienced significant volatility in its stock performance, particularly around quarterly earnings reports, due to overpromising and underdelivering, which is common among companies competing with larger social media platforms like Meta and Google [1] - The Q2 earnings report revealed that while Pinterest exceeded revenue expectations, it failed to meet EPS expectations, leading to a decline in stock value [1] - Recent developments regarding TikTok's ownership are anticipated to disrupt the social media landscape, presenting an opportunity for Pinterest to capitalize on these changes and potentially align itself with top-performing stocks [2] Financial Performance - Despite a slight decline over the past 52 weeks, Pinterest's stock has increased nearly 10% year-to-date, underperforming compared to the S&P 500 Index's 14% gain [4] - Pinterest's forward price-earnings ratio stands at 44.53x, significantly higher than Meta's 25.3x and Alphabet's 24.7x, indicating investor confidence in its future growth [5] - The price-sales ratio for Pinterest is 5.85x, which is lower than Meta's 10.89x and Alphabet's 8.49x, suggesting that Pinterest may be undervalued in this regard [5] Market Position and Strategy - Pinterest operates as a visual inspiration platform, connecting users with businesses to generate advertising revenue [3] - The willingness of investors to pay a higher P/E ratio compared to competitors suggests expectations that Pinterest's investments in AI will eventually yield positive results [6]

Core Insights - Pinterest, Inc. (PINS) and Etsy, Inc. (ETSY) are key players in the social e-commerce sector, focusing on discovery-driven shopping experiences that blend social inspiration with e-commerce to capture consumer spending trends online [1][2] - Pinterest offers a platform for users to save and organize visual recommendations, generating revenue through ads targeted at millennials and Gen Z [1] - Etsy operates a two-sided marketplace that allows merchants to manage products and customer relationships, supported by a strong technology infrastructure [2] Pinterest's Competitive Position - Pinterest is establishing a unique value proposition for advertisers, improving its advertising platform to attract consumer discretionary brands [4] - The company is enhancing operational rigor and utilizing AI to improve relevancy and personalization, which is expected to yield long-term benefits [5] - Pinterest projects a sales growth of 15.8% and EPS growth of 33.3% for 2025, indicating strong future performance [8][11] Etsy's Competitive Position - Etsy is enhancing customer experience through personalized shopping experiences, utilizing AI and machine learning for better engagement [7] - The company expects a modest sales growth of 1.3% for 2025, but a significant decline in EPS by 43.4% [8][13] - Etsy's subsidiary, Depop, has shown strong growth, particularly in the U.S. market, contributing positively to overall performance [9] Market Dynamics - Pinterest's stock has gained 23.5% over the past year, while Etsy's has only increased by 6.8% [14] - From a valuation perspective, Pinterest trades at a higher price/sales ratio of 5.3 compared to Etsy's 1.98, indicating a premium valuation for Pinterest [15] - Both companies carry a Zacks Rank 3 (Hold), but Pinterest is viewed as a better investment option due to its superior growth expectations and operating metrics [16][17]

Core Insights - Pinterest is experiencing significant growth, particularly among Gen Z users, who now represent over 50% of the platform's user base [2][3] - The platform has achieved eight consecutive quarters of record-high users, with AI-driven recommendations outperforming traditional models by 30 percentage points in shopping relevancy [3] - Pinterest's stock has increased by 20% in 2025, surpassing the S&P 500's 11% gain, with second quarter sales rising 17% year-over-year to $998 million [4] User Demographics and Engagement - Gen Z is the largest and fastest-growing demographic on Pinterest, with 39% of this group likely to start their search on the platform [2] - Monthly active users reached a record 578 million, reflecting an 11% increase from the previous year, although there was flat growth in the US & Canada and a slight decline in Europe [4][5] Financial Performance and Future Outlook - The company is investing in AI talent and its sales force, which may lead to a decrease in margins in the third quarter compared to the first half of 2025 [5] - Goldman Sachs highlights a long-term narrative focused on solid double-digit percentage compounded revenue growth and margin expansion through strategic initiatives like shoppable content and partnerships [6] - The CEO noted that the platform is still in the early stages of the AI cycle, with a multi-year runway for growth as it diversifies into new categories like travel and autos [3]

Group 1: Investment Opportunities - Pinterest, United Parcel Service (UPS), and Comcast are identified as stocks trading under $100 that present potential bargain buys [2] - Pinterest shares are currently around $35, having risen 24% since the start of the year, with a price-to-earnings ratio of 13 and a PEG ratio of approximately 0.8, indicating it is a cheap growth stock [5][6] - UPS is trading below $90, facing macroeconomic challenges but remains a long-term investment due to the growing e-commerce sector and its strategic decisions to improve profitability [7][9][10] - Comcast is trading around $34 with a P/E ratio of less than 6, and plans to spin off cable TV networks to focus on higher-growth areas like streaming, which could enhance its growth potential [11][12][13] Group 2: Company Performance Metrics - Pinterest's revenue increased by 17% in the last quarter, reaching just under $1 billion, with monthly active users growing by 11% to 578 million [6] - UPS is currently trading at a P/E multiple of 13, suggesting potential upside as economic conditions improve [10] - Comcast has a high debt load of approximately $100 billion but maintains an operating margin of around 20% over the past six months, indicating strong profitability [12][13]