While platforms like Meta and TikTok often dominate the social media spotlight, Pinterest has been quietly gaining momentum—both in user engagement and on Wall Street. With the stock already up over 19% year-to-date, improving fundamentals, and growing interest from major advertisers, some analysts believe Pinterest (NYSE: PINS) could be on the verge of a breakout in the competitive digital advertising space.

Market Overview: Steady Progress in a Crowded Field

Unlike most social networks built around friend circles and viral content, Pinterest focuses on individual creativity, inspiration, and goal setting through visuals. This unique position allows Pinterest to stand apart and appeal to advertisers looking for high-intent audiences.

After peaking in February 2021, Pinterest stock saw a steep decline, falling 61% from its highs as the post-pandemic digital engagement wave faded. However, the recent concern among investors isn’t about pandemic corrections—it’s about slowing growth in both user metrics and revenue. Still, signs suggest that the worst might be over.

Financial Momentum and User Growth

Pinterest’s latest financial guidance points to a rebound. For Q2, the company expects revenue to land between $960 million and $980 million, reflecting a 12% to 15% year-over-year growth. In Q1, the platform posted a 10% increase in monthly active users, reaching a record 570 million and beating analyst expectations of 563.4 million.

These improvements in both user growth and monetization come amid broader platform enhancements, particularly in advertising technologies powered by artificial intelligence. These upgrades have helped Pinterest better target audiences, optimize click-through rates, and present a more compelling offering to advertisers.

Monetization Gap: A Key Opportunity

Currently, Pinterest generates less revenue per user than rivals such as Meta (NASDAQ: META) and Snap (NYSE: SNAP). However, that also means it has significant upside potential. Even a modest increase in advertising spend on Pinterest’s platform could materially impact its revenue.

With the global digital ad market exceeding $500 billion, capturing just 1% to 2% of this market could result in 13% to 15% annual revenue growth, aligning with analyst forecasts over the next couple of years. This monetization gap is seen not as a weakness, but as a growth lever waiting to be pulled.

Analyst Confidence Driven by AI and Engagement

Wall Street sentiment around PINS is increasingly bullish. Doug Anmuth, a top-rated analyst, recently upgraded Pinterest from Hold to Buy, raising his price target from $35 to $40. Anmuth highlighted Pinterest’s expanding use of full-funnel ad strategies and AI-powered tools, which are enabling it to attract higher ad spend from major clients with annual marketing budgets ranging from $1 billion to $30 billion.

Some of these enterprise-level brands are already allocating 5% to 10% of their ad spend to Pinterest, signaling growing confidence in the platform’s ability to deliver measurable results.

Broad Analyst Support Across Institutions

Additional endorsements have come from leading firms such as Citigroup, BMO Capital, and Wedbush, all of which maintain Buy ratings on PINS. Ron Josey of Citigroup emphasizes Pinterest’s strong user engagement, expanding ad budgets, and operational efficiency. Meanwhile, Brian Pitz of BMO highlights the company’s AI investments as key to enhancing targeting and increasing ad conversion. Scott Devitt from Wedbush also sees room for Pinterest to gain further advertiser share in the coming quarters.

Is Pinterest a Buy, Sell, or Hold?

According to the latest analyst survey, Pinterest holds a Strong Buy consensus rating, based on 24 Buy recommendations and six Holds in the past 90 days. The average price target currently stands at $39.54, which suggests a 14% upside potential from the current trading level.

Conclusion: A Platform Poised for Strategic Expansion

Pinterest may not be making splashy headlines like its larger counterparts, but its fundamentals tell a story of smart, steady evolution. With rising user numbers, increasing monetization through AI, and a differentiated value proposition for advertisers, Pinterest could represent one of the more underrated opportunities in the social media investment landscape.

For investors seeking exposure to the digital advertising boom without the volatility often associated with larger tech giants, Pinterest offers a compelling risk-reward profile. The pieces are in place—the question now is whether the market fully recognizes the potential.