PINS Gains Ground Across Multiple Demographics: Will it Fuel Growth?

Pinterest Inc. PINS is benefiting from healthy demand trends across several demographics in multiple regions. The company’s total monthly active users (MAUs) reached 578 million, up 11% year over year. MAUs in Europe grew 7% year over year while it grew 14% year over year in the rest of the world. U.S. and Canada registered 5% year-over-year growth in the second quarter. It is taking various initiatives to bring more actionable content on the platform from a wide range of sources such as users, creators, publishers and retailers. This has resulted in a solid improvement in engagement metrics like sessions, impressions and saves across all regions. 

Gen Z now accounts for more than 50% of the MAUs, with millennials being the second fastest-growing user segment. Fashion, apparel, beauty and home décor categories have seen healthy traction in the second quarter. The company is also able to expand beyond its traditional niche female audience base, as male audience growth accelerates across several categories such as healthcare, fitness, tech and finance.

The company has recently revealed that it has also gained solid market traction among the Hispanic community in the United States. One in three Hispanic adults uses Pinterest at least once a month, and the number of searches in Spanish has increased 18% year over year in 2025. Food exploration, culinary innovation, home décor, wellness, nature and conservation are the categories witnessing healthy traction among Hispanic Gen Z and Millennial users.

How Are Competitors Faring?

Pinterest faces competition from META Platforms, Inc. META and Snap, Inc. SNAP in the social media space. With 3.48 billion Family Daily Active People, META has a strong multi-generational presence across its social media. Instagram has a strong Gen Z presence. The company is actively developing several AI tools to expand its reach across several demographics. META witnessed healthy traction across all regions during the second quarter.

SNAP boasts a strong user base of Gen Z and young millennials. Despite weakness in U.S. markets, SNAP has witnessed steady growth in Europe and Rest of the World, driven by the growing popularity of the platform among Gen Z audiences.

PINS’ Price Performance, Valuation and Estimates

Pinterest has gained 19.9% over the past year compared with the industry’s growth of 45.8%.

From a valuation standpoint, Pinterest trades at a forward price-to-sales ratio of 5.35, below the industry.

The Zacks Consensus Estimate for Pinterest’s earnings for 2025 has decreased over the past 60 days.

Pinterest currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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