Should you sell your Pinterest stock?

Roth Capital Markets analyst Rohit Kulkarni expects Pinterest (Pinterest Stock Quote, Chart, News, Analysts, Financials NYSE:PINS) to deliver an in-line quarter when it reports fourth-quarter results on Feb. 12, but said execution questions following recent layoffs and a more challenging advertising backdrop justify a more cautious stance.

In a Jan. 30 earnings preview, Kulkarni maintained a “Neutral” rating on Pinterest and lowered his 12-month price target to $29.00 from $34.00, reflecting a valuation of 10x 2027E EBITDA.

He said he has modestly raised 2026 estimates and introduced 2027 forecasts, adding that near-term weakness could create tactical buying opportunities if results come in as expected and management provides a clear rationale behind restructuring actions.

Kulkarni said upside in the first half of 2026 could be supported by tentpole sporting events, but noted uncertainty around post-layoff fundamentals and execution. He also flagged potential pressure on advertising budgets in the back half of 2026 from tariff-related volatility, a ramp in ChatGPT ads, and improving TikTok execution in the U.S.

For the quarter, he said a positive stock reaction would likely require 4Q revenue above $1.33-billion and Adjusted EBITDA above $545-million, and/or 1Q guidance midpoints exceeding $975-million in revenue and $200-million in Adjusted EBITDA.

Commentary pointing to stronger engagement with AI features in North America and Europe, along with easing tariff impacts on large advertisers, would also be viewed constructively.

Kulkarni said Performance+ adoption remains a key swing factor, particularly among SMB advertisers, which represented about 15% of the business as of the third quarter. He added that sustained MAU growth in North America and Europe, where 42% of users generate 93% of revenue, and evidence that ARPU gains can persist into 2026 would be important signals for investors.

On valuation, Kulkarni noted that Pinterest shares are down 7% year-to-date and are trading near the low end of their recent range at about 9x 2027E EBITDA, versus a 12-month range of 9x to 17x.

Kulkarni said Pinterest should generate $1,272.9-million in Adjusted EBITDA on revenue of $4,232.9-million in fiscal 2025, improving to $1,537.6-million in Adjusted EBITDA on revenue of $4,867.4-million in fiscal 2026.

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