Pinterest (PINS -1.55%) stock investors probably want to pull the pin on all the uncertainty they have endured in recent months. The stock has experienced a decline of nearly 75% amid a bear market, and the image-sharing website struggles with monthly active user (MAU) growth. Co-founder Ben Silbermann has stepped down as CEO, adding to the uncertainty surrounding the company's leadership.

Nonetheless, Pinterest hired a new CEO: Bill Ready, who was president of commerce, payments, and next billion users (yup, that was really his title) at Alphabet's Google. Under his leadership, Pinterest may be a top growth stock to buy now for three reasons.

1. The company's renewed focus

Although Silbermann is no longer serving as CEO, investors should know that he is not leaving the company. He now serves as its executive chair, a move that will take him out of the day-to-day operations but still allow for his involvement in higher-level decisions.

That may minimize the uncertainty of elevating Ready to the CEO position. Under Ready's leadership, Pinterest looks poised to pivot more directly into e-commerce. It had historically generated revenue through promoted pins, or ads based on customer preferences. Now consumers can buy items directly through those promoted pins, meaning Pinterest will likely play a direct role in e-commerce, a factor that could take average revenue per user (ARPU) much higher over time.

Additionally, Elliott Management took a stake in the company during the summer. Elliott has historically pushed for changes that have increased shareholder value. Also, Ready got in front of Elliott's involvement on the second-quarter 2022 earnings call, saying he engaged with Elliott and that it was "aligned with our vision on what Pinterest can become." While details remain scant, Elliott's history of pushing for positive change could bode well for the company.

2. The rising average revenue per user

Investors soured on Pinterest stock as MAUs began to decline. Its 433 million user base dropped 5% over 12 months. Also, this happened as other advertising platforms such as Alphabet and Meta Platforms noticed a slowdown in ad spending.

However, one aspect of Pinterest's strategy held up well amid the bear market: ARPU. In the second quarter of 2022, global ARPU came in at $1.54, rising 17% from the year-ago level.

The U.S. and Canada, its strongest markets, remained strong as ARPU was $5.82, 20% more than last year. Pinterest estimates about 45% of its U.S. users come from households with earnings exceeding $100,000 per year. This shows why the U.S. and Canada lead in generating ARPU and tremendous potential for gains longer term.

Still, improvements were across the board as Europe's $0.86 in ARPU grew 20%, and the rest of the world, at just $0.10, increased its ARPU by 80%.

Moreover, these numbers could rise dramatically under Ready's new e-commerce strategy. The increased ARPU that would probably bring should accrue to both the top and bottom lines.

3. Financials and valuation

Indeed, the top and bottom lines have disappointed so far this year. In the first half of the year, Pinterest brought in just over $1.2 billion, a 13% increase from the same period in 2021. That represents a considerable slowdown from 2021 when revenue surged by 52%.

That first two quarters also experienced a net loss of $48 million during that timeframe. Pinterest reported $48 million in net income during the first two quarters of 2021. The 22% growth in costs and expenses led to the net losses. Also, analysts forecast only 8% revenue growth in 2022, indicating a recovery will probably take time.

Nonetheless, the same analysts predict 16% revenue growth for 2023, which could signify the beginning of a turnaround.

Moreover, Pinterest's price-to-sales (P/S) ratio now stands at six, just above its all-time lows in the summer. This is a dramatic drop from a sales multiple that exceeded 30 at its peak in early 2021, indicating investors can benefit from an unusually low stock price for the social media stock.

Consider Pinterest stock

Admittedly, Pinterest's prospects appear uncertain as the company changes leadership, faces a massive stock price decline, and endures stagnant usage levels.

However, the levels of ARPU point to both past growth and significant potential to drive more revenue growth. Assuming Ready's e-commerce strategy can reignite ARPU and user interest, Pinterest could surge much higher from these levels.