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Pinterest Faces Price Target Cuts Amidst Robust User Growth

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 2/20/2026, 4:08 pm ET 2/20/2026, 4:08 pm ET | 5 min 5 min read
Pinterest Faces Price Target Cuts Amidst Robust User Growth Thumbnail

Pinterest Inc.’s stocks have been trading up by 5.96 percent, driven by upbeat investor sentiment from strategic market expansion news.

Media industry expert:

Analyst sentiment – positive

Market Position & Fundamentals: Pinterest exhibits a robust market position with its impressive fundamentals. The company’s revenue of $4.22 billion and a substantial gross margin of 80.1% underscore its strong profitability potential. Although its EBIT and EBITDA margins stand at 8% and 8.6% respectively, aligning with profitability expectations, there’s room for improvement. The favorable valuation with a price-to-cash flow of 7 and price-to-sale ratio of 2.58 highlights its attractiveness in the market. The exceptional financial strength is evident with a total debt-to-equity ratio of 0.05, suggesting a sturdy balance sheet. Despite large stock repurchases, maintaining a high cash position reinforces financial resilience and strategic agility.

Technical Analysis & Trading Strategy: Pinterest’s weekly trading patterns indicate an ascending trajectory, with a consistent increase from $15.51 to $17.7. This pattern reflects bullish sentiment, as rising lows and highs corroborate an uptrend. An actionable trading strategy would be to capitalize on the bullish trend by adopting a buy-on-dips approach, focusing on acquiring shares near the support level around $16.7 following pullbacks. The volume reflects market confidence, supporting this strategy. Investors should eye the next psychological resistance level near $18, which if breached, could drive further upward momentum.

Catalysts & Outlook: Recent strategic appointments and board expansion invigorate Pinterest’s growth outlook, particularly aiming at Gen Z adoption and commerce evolution. Q4 results revealed solid user growth, albeit amid revenue challenges primarily attributed to macroeconomic pressures. Noteworthy is the projected Q1 revenue growth of 11%-14%, suggesting positive long-term trends despite short-term macro headwinds. While several analysts have revised price targets downward, the consensus maintains a positive sentiment. The target of $23 suggests potential growth from current levels. With recent account surges exceeding estimates, Pinterest shows promise in surpassing Media and Interactive Multi-Media industry benchmarks, despite immediate economic crosswinds.

Candlestick Chart

Weekly Update Feb 16 – Feb 20, 2026: On Friday, February 20, 2026 Pinterest Inc. stock [NYSE: PINS] is trending up by 5.96%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Pinterest’s latest financial report provides an illuminating view of its current economic standing. The reported fourth-quarter earnings achieved the EPS target at $0.67 but missed revenue targets slightly. Yet, what stands out is the robust rise in users—an impressive 12% year-over-year, a crucial indicator of the platform’s expanding influence.

On the balance sheet, Pinterest maintains solid financial health with a total equity of approximately $4.75 billion and total assets accounting for over $5.49 billion. With significant investments in short-term opportunities, the company still projects an adjusted EBITDA range of $166 million to $186 million, intending to deliver a year-over-year revenue increase between 11 and 14% for Q1 2026.

More Breaking News

Further financial metrics underscore their commitment to growth, captured by a price-to-sales ratio of 2.58 and a notable gross margin of 80.1%. Despite market headwinds such as tariff influences and macroeconomic challenges, Pinterest’s strategic positioning in monetizing their user base cannot be understated, especially given the recent inroads into performance-driven commerce.

Conclusion

In summary, Pinterest’s current financial trajectory juxtaposes essential challenges and promising growth opportunities. While the short-term economic pressures are tangible in corporate guidance and analyst sentiment, the company’s resilient surge in user growth, an evolving strategic expansion into commerce, and augmented leadership offer encouraging avenues for future stability and growth. For traders and investors, the fluctuations in price targets and counsel to ‘Buy’ signal a calculated assessment of short-term hurdles contrasted against long-term value prospects in a transformative market. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This resonates with trading strategies highlighting patience and incremental growth amidst market dynamics.

The overarching takeaway is a vivid portrait of a company keen to morph potential into reality while facing sector-wide pressures. As Pinterest endeavors to recalibrate its commercial focus amid various market pressures, the groundwork for a significant return on trading appears firmly under construction, paving a promising road forward as market conditions stabilize.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”