Pinterest (NYSE:PINS) Shares Gap Down – Here’s What Happened

Pinterest, Inc. (NYSE:PINS)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $25.58, but opened at $23.98. Pinterest shares last traded at $24.52, with a volume of 4,223,854 shares traded.

Key Headlines Impacting Pinterest

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Q2 results exceeded expectations: Pinterest reported revenue of $1.18 billion, up 18% year over year, and adjusted EPS of $0.43 versus analysts’ estimate of $0.36. Monthly active users rose 11% to a record 640 million, while adjusted EBITDA reached $311 million and free cash flow was $270 million. Pinterest Announces Second Quarter 2026 Results, Delivers 18% Revenue Growth and Record Users
• Positive Sentiment: AI and user growth remain strategic positives: Coverage highlighted Pinterest’s efforts to become an AI-powered shopping platform, with record users and continued double-digit user growth supporting its advertising and commerce opportunities. Pinterest’s AI Push Pays Off in Record Users and Revenue
• Positive Sentiment: Several analysts raised price targets: Morgan Stanley lifted its target to $32, Evercore to $29, Mizuho to $32, UBS to $33, Guggenheim to $26, RBC to $25, Baird to $26, and Rosenblatt to $25. Cantor Fitzgerald reaffirmed its overweight rating with a $30 target.
• Neutral Sentiment: Mixed analyst view: Wedbush reaffirmed a neutral rating with a $24 target, while Baird, Evercore, RBC, and Rosenblatt retained neutral-equivalent ratings despite increasing their targets.
• Negative Sentiment: Forward outlook disappointed investors: Pinterest expects third-quarter revenue of approximately $1.2 billion, broadly in line with estimates but signaling slower growth. Rising ad competition and higher costs overshadowed the earnings beat, prompting a sharp after-hours decline and continued pressure on the stock. Pinterest expects slower quarterly revenue growth as ad competition heats up

Analyst Ratings Changes

PINS has been the subject of several research reports. Rothschild & Co Redburn set a $23.00 price objective on shares of Pinterest and gave the company a “neutral” rating in a research note on Monday, April 27th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $24.00 price objective on shares of Pinterest in a report on Tuesday, May 5th. Robert W. Baird increased their target price on Pinterest from $24.00 to $26.00 and gave the stock a “neutral” rating in a research report on Wednesday. Barclays lifted their target price on Pinterest from $27.00 to $31.00 and gave the company an “equal weight” rating in a report on Wednesday. Finally, Benchmark lowered their price target on Pinterest from $34.00 to $33.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Seventeen research analysts have rated the stock with a Buy rating and nineteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $28.85.

Pinterest Price Performance

The company has a 50-day moving average price of $21.93 and a two-hundred day moving average price of $20.50. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.23 and a quick ratio of 4.23. The company has a market cap of $13.06 billion, a PE ratio of 48.64, a P/E/G ratio of 1.43 and a beta of 0.90.

Pinterest (NYSE:PINS) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.07. Pinterest had a return on equity of 8.26% and a net margin of 7.64%.The firm had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Pinterest’s quarterly revenue was up 18.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.33 EPS. Sell-side analysts expect that Pinterest, Inc. will post 0.63 earnings per share for the current fiscal year.

Insider Buying and Selling at Pinterest

In related news, insider Wanjiku Juanita Walcott sold 27,337 shares of the firm’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $20.46, for a total transaction of $559,315.02. Following the completion of the sale, the insider directly owned 724,673 shares of the company’s stock, valued at approximately $14,826,809.58. This trade represents a 3.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Benjamin Silbermann sold 46,875 shares of the firm’s stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $22.54, for a total transaction of $1,056,562.50. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 370,720 shares of company stock valued at $7,892,627 over the last 90 days. Insiders own 8.09% of the company’s stock.

Institutional Trading of Pinterest

Several large investors have recently modified their holdings of the business. Elevated Capital Advisors LLC purchased a new position in Pinterest in the fourth quarter valued at about $26,000. Caitong International Asset Management Co. Ltd increased its holdings in Pinterest by 2,017.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,101 shares of the company’s stock worth $29,000 after purchasing an additional 1,049 shares during the last quarter. Addison Advisors LLC increased its holdings in Pinterest by 727.3% during the 4th quarter. Addison Advisors LLC now owns 1,365 shares of the company’s stock worth $35,000 after purchasing an additional 1,200 shares during the last quarter. Garner Asset Management Corp acquired a new position in shares of Pinterest in the 4th quarter valued at approximately $36,000. Finally, Summit Securities Group LLC acquired a new position in shares of Pinterest in the 1st quarter valued at approximately $43,000. 88.81% of the stock is currently owned by institutional investors and hedge funds.

About Pinterest

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate “Pins” — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company’s primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.