Buying Opportunity in Pinterest (PINS)
"Furthermore, when looking at my proprietary discounted cash flow valuation calculation, the stock is trading at a significant discount in my opinion. Current market price is $26. Intrinsic value per share is over $75. So, you can understand why I've had this stock rated as one of the best stocks to buy. And this price decrease of more than 21% on the day following the earnings release, I see as a big opportunity. I see this as a buying opportunity and what I'll be doing with my shares, I will not be selling any of my shares. In fact, I'm likely more interested in adding shares to my portfolio, even if it bounces up 5 or 10% from these lows."
The speaker outlines a strong bullish trade call on Pinterest (PINS) due to the stock trading at a significant discount. Highlighting a low forward price-to-earnings ratio and a deep undervaluation based on discounted cash flow analysis, he indicates plans to add to his existing position despite a recent drop following earnings.
Pinterest Revenue Projections and Advertising Woes Signal Trouble
"Yeah. I mean, that's a perfect example of price for perfection AMD, right? I mean, it's hard to live up to that bar. The stock's doubled this year, Lisa said. That's $200 billion of new Holder was out there. The numbers are just it's outrageous. But I'm looking at Pinterest pre-market down, 18%. Pins, pins is the ticker. So this is basically the platform where you go to find ideas, right? Like I bought a new home. I want to know how to decorate it."
The speaker shifts focus to Pinterest, noting the pre-market drop of 18% and questioning its revenue projections and ad business growth. The commentary draws a parallel to the high expectations seen in other tech stocks, raising concerns about its future performance.
Pinterest Revenue Projections Fall Short Amid Tariff Concerns
"But I'm looking at Pinterest uh pre-market down 18%. Down 18%. I know. Yeah. Pins. P I N S is a ticker. So this is basically the platform where you go to find ideas, right? Like I bought a new home. I want to know how to decorate it. I go to Pinterest and I do and I search there and I look for all these cool pictures. But the problem is that their revenue projections fell short, right? And that's sign that their advertising business is not growing as fast as expected. And the company makes almost all of its revenue from advertising. So that's big for them. Um they even launched this thing called Pinterest Assistant. I haven't tested into that yet. But another issue that the CFO pointed to was tariffs. I mean they say tariffs are impacting the home furnishing category."
The speaker notes that Pinterest (PINS) is trading down 18% pre-market, attributing the decline to revenue projections that missed expectations. Furthermore, challenges like tariff impacts on the home furnishing category are pressuring its advertising-driven revenue model.
Pinterest Faces Tariff Headwinds and Pre-Market Sell-Off
"I'm sensing a trend in your report this morning and I mean looking at the results as well from Pinterest this morning that stock is getting crushed. The social media company is expecting revenue to come in around $1.3 billion. This is a bit of a tariff play though. The CEO sounded the alarm that tariffs are impacting home furnishing. That's created broad pullback in retailer spending across the United States and Canada where Pinterest gets most of its revenue from. Pinterest has strong exposure to retail as its plat platform is used for home decor. And that stock is down nearly 20% in pre-market."
Pinterest is under pressure due to tariff impacts affecting its core retail revenue, leading to a dramatic pre-market decline of nearly 20%. This could signal continued weakness given its significant exposure to home decor and retail dynamics.
Buy Pinterest Stock Pre-Earnings Based on Attractive Valuation
"I've felt this year that the risk versus reward is very worthwhile. And not only did I rate Pinterest as one of the best stocks to buy, but I bought Pinterest stock for my own portfolio a few weeks ago. And then when I look at Pinterest on a forward price to earnings ratio, it's trading at a forward PE of 18, which is less than the average stock in the S&P 500, which is trading at a forward PE of around 23 to 25. So Pinterest is below even that while it's growing revenue at 20%, its profits are expanding faster, its cash flows are expanding faster, it's operating in the advertising industry, which is one of my favorite industries because of the growth potential for decades or centuries actually. And it's just the scale over $1 trillion in expected spending on advertising globally in 2026 are the early estimates for the figures. So risk versus reward, I like Pinterest and this stock is undervalued enough where I think it does make sense that you can buy before the company announces earnings. But remember, an earnings release creates increasing volatility and the share price could move much larger than it typically moves on a regular trading day."
The speaker explains that despite short-term volatility risk ahead of earnings, Pinterest trade is compelling due to its significantly undervalued price relative to an intrinsic value of over $87 compared to a current market price of $33, supported by favorable forward PE and strong revenue metrics.
Explicit Buy Call on PINS with Detailed Price Scenarios
"I've had Pinterest stock rated as one of the best stocks to buy all year long in 2025. And I recently bought Pinterest stock for my own portfolio. So, investors are asking me, what do I think about Pinterest stock in its upside for next year? Where do I think the stock price will end up by the end of 2026? Between $46 and $50 a share is where I think Pinterest shares end up by the end of next year. And that's one of the reasons why I bought Pinterest stock myself, and I see nice upside here for 2026."
The speaker explicitly endorses Pinterest (PINS) as a top buy, sharing that he recently added it to his portfolio. He outlines a scenario analysis based on forward PE multiples and earnings estimates, suggesting that if trends hold, the stock could reach between $46 and $50 by the end of next year. Key catalysts include improvements in AI-driven advertising, positioning the company for better revenue per user.