What Makes Pinterest (PINS) an Interesting Investment?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund’s Investor Class fund ARTQX returned 0.26%, Advisor Class fund APDQX posted a return of 0.26%, and Institutional Class fund APHQX returned 0.33%, compared to a 5.35% return for the Russell Midcap Value Index. Equity markets experienced heightened volatility followed by the announcement and subsequent pause of the so-called "Liberation Day" tariffs. The portfolio underperformed in the quarter due to the market’s preference for growth and the outperformance of more cyclical sectors and industries. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks such as Pinterest, Inc. (NYSE:PINS). Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform that enables users to find ideas, such as recipes, home, and style inspiration. The one-month return of Pinterest, Inc. (NYSE:PINS) was -4.92%, and its shares gained 17.63% of their value over the last 52 weeks. On August 28, 2025, Pinterest, Inc. (NYSE:PINS) stock closed at $36.70 per share, with a market capitalization of $24.953 billion.

Artisan Mid Cap Value Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its second quarter 2025 investor letter:

"On the positive side, nVent Electric, Pinterest, Inc. (NYSE:PINS) and Ferguson Enterprises were top contributors. Pinterest (PINS) is a social media platform and visual discovery tool. We had been researching PINS for sometime, but its valuation had always been a hurdle. But in April, when the stock was down ~40% from mid-February due to uncertainty around tariffs, we took advantage of attractive prices to start a position. Like other social media platforms, PINS generates revenue from digital advertising, which continues to grow well above rates of US GDP, as traditional formats lose share. However, PINS’s R&D and technology had historically trailed peers considerably, contributing to its relatively low engagement and monetization. Where the investment case has become more interesting is new management that took over in 2022 has changed the company’s strategy, prioritizing growing the user base, engagement, monetization and profitability, and thus far it has been delivering on these objectives. Key initiatives include a faster pace of ad product innovation, improved ad relevance to drive a higher ad load, the integration of new monetization features and a focus on lower funnel advertising (performance advertising) solutions that can optimize returns for advertisers."

Pinterest, Inc. (NYSE:PINS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Pinterest, Inc. (NYSE:PINS) at the end of the second quarter, which was 86 in the previous quarter. In the second quarter of 2025, Pinterest, Inc. (NYSE:PINS) reported revenue of $998 million, up 17% year-over-year. While we acknowledge the potential of Pinterest, Inc. (NYSE:PINS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Pinterest, Inc. (NYSE:PINS) and shared the list of stocks Jim Cramer commented on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.