Are Pinterest Shares worth it?

by | Jul 3, 2025 | All, Finance, Investment, Leadership, Social Media | 0 comments

Pinterest Shares Technical Overview

 

Moving Averages & Momentum

  • Price vs. Averages: PINS is trading above its 20-, 50-, 100-, and 200-day moving averages — a classic (short term) bullish sign
  • Bullish Crowd: TipRanks reports that 8 of 12 moving averages show “Buy” signals investors.com+6tipranks.com+6investing.com+6.

 

Indicators

 

Support & Resistance

 

Chart Patterns & Setups

 

Ratings & Institutional Momentum

 

Contrasting Views & Risks

  • Investing.com daily signals show a mixed outlook: 8 sells vs. 6 buys, with “Strong Sell” flagged in 8 of 10 indicators investing.com.

  • MACD slowed to ~0.18 — indicating a minor slowdown or short-term consolidation .

  • Some models caution that current volatility suggests waiting for clearer trend confirmation .

 

Takeaway & Key Levels

  • Bullish bias remains: trend and momentum both support further gains, at least short term.

  • $30.6–30.9 area is critical support. Loss below here could weaken the bullish setup.

  • Watch for a breakout above $40.90 — especially with volume — to confirm the double-bottom and signal a major move.

  • However: Mixed technical signals and some warnings (MACD flattening, sell-heavy indicators) suggest a short-term pullback or consolidation is possible before another leg up.

 

Important Overall View

A 46% rise over 6 years (from ~$24 in 2019 to ~$35 now) is modest by stock market standards — especially in the tech sector, where high-growth companies often return 100%–300%+ over similar timeframes.

Here’s how that 46% looks in context:

  • Annualized return: ~6.5% per year (not adjusted for inflation)

  • Compared to the S&P 500: The S&P 500 has returned about 11–12% annually over the past 6 years.

  • Compared to top tech stocks:

    • Apple (AAPL): Up ~350%+

    • NVIDIA (NVDA): Up ~1500%+

    • Meta (META): Up ~250%+

    • Pinterest (PINS): Just ~46%

The leadership at Pinterest has not delivered the kind of growth investors typically expect from a tech company in the same league.

Here’s the breakdown:

1. Underwhelming Share Growth

  • Since its IPO in 2019, Pinterest is up about 46% — far below other tech firms over the same period.

  • In contrast, companies like Meta, Microsoft, Nvidia, and even Snap have shown stronger stock performance and revenue growth.

 

2. Monetization & Execution Challenges

While Pinterest has grown its user base (especially internationally), revenue per user remains low. Unlike Meta or Google, Pinterest:

  • Lacks scalable ad infrastructure.

  • Struggles with targeting sophistication and conversion optimization.

  • Faces brand safety concerns from user experience inconsistencies.

Investors must ask: How will Pinterest monetize a stagnating or disaffected user base amid rising competition and regulatory scrutiny?

3. Leadership Missteps

CEO Bill Ready’s tenure has been marked by bold rhetoric about AI transformation — but the execution has revealed overreach and misalignment with core users.

His vision of creating a fully AI-moderated platform may appeal to operational efficiency, but it’s a cost-cutting fantasy that is rapidly alienating Pinterest’s most valuable users: creators, curators, and small businesses.

A tech CEO must balance efficiency with product integrity. Right now, Pinterest appears to be sacrificing the latter.

  • Several shifts in strategic direction (like overreliance on automation/AI and poor user communication) have frustrated core users.

  • The recent AI moderation fiasco, mass suspensions, and lack of human support have damaged trust — and potentially long-term user growth.

  • These moves may have looked efficient to investors short-term, but they show poor long-term leadership judgment.

  • The platform still suffers from bad software design. Re-pinning is a copy of an existing pin. Not a pointer copy. That’s why they have no control over re-pins and ban people for posting other peoples pins. Even with out banning the original pin (because they can’t find it).
  • They use way too many developer tools which indicates quick fixes and unwanted limitations.

 

4. Missing the Innovation Curve

Short videos have been a total success for Instagram, TikTok, YouTube, and Meta — but a complete failure for Pinterest.

While TikTok revolutionized content with addictive short clips and Meta aggressively integrated Reels across its platforms, Pinterest’s attempts to leverage short-form video have fallen flat. The platform struggles with user engagement and creator adoption in this format, missing out on a massive wave that’s driving growth and ad dollars elsewhere.

Pinterest’s slow and ineffective embrace of short videos highlights its broader innovation struggles in a rapidly evolving social media landscape.

  • The product experience is nearly identical to what it was five years ago.

  • The company has not captured the Gen Z or creator economy waves. They are trying but it might be too late.

  • There’s a visible lack of ecosystem integration compared to its peers.

Innovation is not optional in the tech sector — it’s existential. Pinterest’s failure to evolve threatens long-term user engagement and advertiser value.

Is Pinterest Worth the Risk?

Pinterest is not necessary a broken company — but it is a slow-growth, underperforming asset in a sector that demands speed, innovation, and adaptability.

Pinterest leadership has kept the company stable, but not competitive. For a social platform with massive user potential, the lack of innovation, misalignment with user expectations, and mediocre investor returns paint a picture of missed opportunities.

Unless leadership realigns with its community, improves product stickiness, and redefines its monetization strategy, Pinterest risks becoming another “what could have been” tech story — eclipsed by faster, bolder, and smarter competition.

Bill Ready’s idea to replace staff with AI could blow up in his face and considering they have had huge technical problems for the past nine months, it is an open question if it hasn’t already begun blowing up.

Recommendation: Rotate to higher-growth digital platforms unless Pinterest demonstrates concrete signs of strategic reversal. The growth is simply to slow and the stock has a kind of volatility that really challenges my patience.

 

Verdict:

Pinterest’s performance has significantly lagged behind its peers and the broader market. While it hasn’t been a losing investment unless you bought under the Covid crisis, it’s underwhelming for a tech company — especially one with high user engagement and a monetizable platform. The AI crisis Pinterest is experiencing atm. makes investments risky. I would sell. If I had any.

Due to their consistent underperformance, I wouldn’t touch Pinterest with a ten-foot pole — and there are three major reasons why:

Underperformance — their stock just hasn’t delivered the growth investors expect.

Userbase alienation — recent moves have upset users, risking long-term engagement and trust.

Strong competition — nearly every other tech stock in the same space is outperforming them by a wide margin.

 

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