Pinterest's Trading Volume Drops 43.96% Ranking 369th Despite Stock Price Gains

On April 28, 2025, Pinterest (PINS) saw a trading volume of $232 million, marking a 43.96% decrease from the previous day. The stock ranked 369th in terms of trading volume for the day. Pinterest's stock price increased by 0.42%, marking its fifth consecutive day of gains, with a total increase of 8.10% over the past five days.

Roth Capital has lowered its price target for Pinterest from $39 to $29, while maintaining a Neutral rating. This adjustment comes as part of a broader forecast for the first-quarter performance within the social media sector. The decision reflects anticipated reductions in advertising spending beginning in April, with potential further cuts expected throughout the second quarter if trade tariff uncertainties persist.

Recent earnings from Alphabet, which highlighted a deceleration in YouTube's growth due to reduced brand spending, suggest similar challenges for Pinterest. The slowdown hints at weaker performance in top-of-funnel campaigns during the first quarter. Roth Capital remains cautious regarding mid-sized advertising platforms, choosing to refrain from taking more aggressive positions, despite some market corrections and positive responses to Google's earnings report.

Pinterest reported a 19% increase in revenue for the full year 2024, reaching $3.65 billion. The company's Q4 revenue was $1.154 billion, up 18% year over year. Adjusted EBITDA for 2024 exceeded $1 billion, marking a roughly 50% increase year over year. The adjusted EBITDA margin for Q4 was 41%, an increase of 320 basis points from the previous year. Pinterest achieved GAAP profitability for the first time since 2021.

Pinterest's global monthly active users (MAUs) reached 553 million, growing 11% year over year. In the US and Canada, MAUs grew 4% to 101 million, while in Europe, MAUs grew 7% to 145 million. The rest of the world saw a 15% increase in MAUs to 307 million. Ad impressions grew 43% in Q4, but ad pricing declined 18% year over year. Free cash flow for the full year 2024 was $940 million, a 55% increase. Cash and marketable securities at the end of Q4 were $2.5 billion, and share repurchases for the full year 2024 totaled $600 million, reducing the fully diluted share count by approximately 1.7%.

Pinterest's Q1 2025 revenue guidance is $837 million to $852 million, representing 13% to 15% growth year over year. The company's Q1 2025 adjusted EBITDA guidance is $155 million to $170 million. Pinterest has successfully integrated AI into its platform, enhancing user experience and advertising performance, leading to a 90% increase in clicks to advertisers. However, the company faces challenges in further improving the DAU to MAU ratio, particularly in mature markets, and does not accept political advertising, which limited potential revenue growth during election-related spending periods.