Pinterest Slumps to 400th in Trading Volume Ranking as Stock Drops 21

On June 12, 2025, Pinterest (PINS) experienced a significant decline, with its trading volume reaching $215 million, marking a 33.31% decrease from the previous day. This drop placed Pinterest at the 400th position in terms of trading volume for the day. The stock price of Pinterest fell by 2.10%, marking the second consecutive day of decline, with a total decrease of 3.10% over the past two days.

Pinterest's recent performance has been closely watched by investors, as the company's stock has shown mixed results compared to broader market indices. Over the past month, Pinterest's stock has risen by 6.62%, but this gain lags behind the 11.99% increase in the Computer and Technology sector and the 6.9% gain in the S&P 500. The upcoming earnings release is anticipated to provide further insights into the company's financial health, with analysts projecting an EPS of $0.34, reflecting a 17.24% year-over-year increase. Revenue is expected to reach $973.08 million, a 13.99% rise from the same quarter last year.

Investors are also paying attention to recent revisions in analyst forecasts, which can indicate short-term business trends. Pinterest currently holds a Zacks Rank of #3 (Hold), with a Forward P/E ratio of 19.12, suggesting a discount compared to its industry's Forward P/E of 29.06. The company's PEG ratio stands at 0.57, lower than the industry average of 2.29, indicating potential undervaluation.

Despite near-term growth challenges, such as tariffs and tough comparables, Pinterest is seen as a compelling buy due to its attractive valuation. The company's stock has faced difficulties in gaining momentum in 2025, reflecting broader concerns about ad-driven revenue models in a slowing economy. However, Pinterest's fair value estimate, based on the 2 Stage Free Cash Flow to Equity model, is US$69.74, suggesting that the stock could be 50% undervalued.

Pinterest's resilience in the face of technological advancements and shifts in user behavior will be crucial for maintaining its market share and revenue growth. The company's ability to adapt to these changes will determine its long-term success and investor confidence.