Pinterest: Underappreciated Media Bet (Rating Upgrade)

  • Pinterest offers an attractive growth narrative, with 2024 revenue of $3.65 billion (+19% YoY) and 11% MAU growth to 553 million. Analyst consensus projects 2025 revenue to grow 10-15% YoY to ~$4.2 billion, driven by AI-enhanced ad tools and partnerships with Amazon and Google. Profitability is at an inflection point, with a projected 300-400 bps margin expansion, leading to ~$1 billion in 2025 free cash flow.