Pinterest Earnings On Deck, With Stock (PINS) Near Breakout Territory

Pinterest Inc. (NYSE: PINS) heads into its second-quarter earnings release with a cautiously optimistic set up. Markets are keenly awaiting the report, scheduled for release after the market closes today, to gauge whether the visual discovery platform can sustain its recent momentum, and potentially propel Pinterest's stock beyond that $40 level towards a breakout.

For Pinterest (PINS), analysts expect Q2 2025 earnings per share (EPS) of $0.35, up from $0.29 a year ago – demonstrating a solid 21% year-over-year increase in profitability. Revenue is projected at $975.5 million, marking a healthy 14% growth compared to $853.7 million in the same quarter last year.

Technically, the stock's 50-day and 200-day simple moving averages (SMAs) are $34.57 and $32.25, respectively, suggesting a positive trend over both the short and long term, with current price ~$39 healthily above both.

A key driver of Pinterest's growth has been its increasing user base. Monthly Active Users (MAUs) reached 570 million globally in Q1 2025, a 10% increase from the previous year.

This expanding audience, particularly the significant Gen Z demographic (over 40% of users), makes Pinterest an attractive platform for advertisers, and has driven the stock to outperform this year. The strategic use of AI-driven advertising tools has further enhanced ad targeting capabilities, leading to increased advertising spend on the platform and bolstering revenue.

Pinterest's fourth-quarter and full-year 2024 results were particularly strong, with Q4 revenue reaching $1.15 billion – the company's first billion-dollar revenue quarter. Full-year revenue hit $3.65 billion, a 19% increase from the previous year. This performance led to a surge in the stock price, reflecting market confidence in the company's growth trajectory.

The company's Q1 2025 guidance for Q2 projected revenue between $960 million and $980 million, indicating continued growth of 12-15% has set us up well for the print.

In the month leading in to earnings, analysts have moved upwards with EPS estimates, with 4 increased revisions, and none moving lower.

Despite the solid setup, it is worth remembering however that the digital advertising landscape is fiercely competitive, with platforms vying for ad dollars and user attention. This $40 level has also proved a tough nut to crack, with the February pullback following on from that seen through much of Q2 last year, as well as bin Feb of the same.

A glance at the 2 year chart below on weekly candles highlights the level well, with the attempted break above ultimately failing to hold, setting it up as a key level to watch.

Looking ahead, Pinterest's strategic focus on international expansion, particularly through partnerships like the ad deal with Google, is crucial for sustained growth. The company's ability to penetrate new markets and attract international users will determine its long-term success.