How to Invest in Pinterest Stock

How to buy Pinterest stock

Buy shares of Pinterest or any other publicly traded company by following these steps:

1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in Pinterest?

As with any investment decision, it's smart to do a fair amount of research before making a trade. The decision around Pinterest stock is no different, and whether it's the right pick for you is entirely subjective. However, there are a few reasons Pinterest might be interesting to you as a portfolio addition.

Why you may want to invest in Pinterest:

If you're a growth investor, Pinterest might be worthwhile. Between 2020 and 2023, the company almost doubled its revenue to just over $3 billion. The company's business has thrived alongside a robust and growing user base.

Pinterest also offers a relatively unique product offering and an attractive space for monetizable ads; there is great potential for further expansion.

Why you may want to avoid Pinterest:

If you are an income investor looking for monthly or quarterly cash flow, Pinterest isn't the best bet. Since Pinterest is a growth stock in the tech space, you shouldn't expect a dividend payout anytime soon. You might consider looking at some of the blue chip dividend payers, like defensive stocks in the utilities and/or healthcare sectors.

Pinterest also faces a number of challenges. First, the company spends a great deal on marketing and other mechanisms to capture new users, which has translated into slim profit margins.

Pinterest competes in a space with both Meta's (META +0.59%) Instagram and TikTok, two giants in the visual search sector. Finally, as tech has spiked and fallen over the last few years, any potential investor should be prepared to deal with some amount of volatility in the stock.

Pros and cons of investing in Pinterest

Some advantages of investing in Pinterest include:

• High-intent users. One of Pinterest's major appeals to advertisers is that its users tend to visit the platform with purchase intent. Many are seeking inspiration for a wedding, vacation, home renovation project, etc. Pinterest continues to expand its artificial intelligence (AI) and machine learning capabilities to improve personalization and ad targeting.
• Growing monthly active users. Pinterest continues to grow its base of active monthly users, albeit at a slower pace than it did in the past. The platform continues to gain popularity among Gen Z users, as well as those outside the U.S.
• Strong balance sheet. As of the first quarter of 2025, Pinterest had about $2.6 billion in cash and short-term investments and only $144 billion in long-term debt.
• Potential acquisition target. Rumors have long swirled about Pinterest's potential as an acquisition target. Though these are just rumors, when acquisitions occur, shareholders often receive a premium for their shares over the market price.

Some downsides to investing in Pinterest stock:

• Vulnerability to a recession. Pinterest users tend to visit the platform for inspiration on discretionary spending, like fashion, travel, and decorating, which could make it vulnerable to a prolonged economic downturn.
• Intense competition. Pinterest faces heavy competition for e-commerce dollars from behemoths like Instagram, Alphabet's YouTube, Amazon, and TikTok, all of which have far deeper pockets.
• No dividends. Pinterest is still in growth mode and has yet to pay a dividend in its history as a publicly traded company.

Is Pinterest profitable?

Pinterest has also shown a unique ability to increase its revenue, taking gross sales from $1.1 billion in 2019 to more than $3.6 billion in fiscal 2024. After posting a generally accepted accounting principles (GAAP) net loss of $36 million for 2023, the company reported net income of $1.86 billion in fiscal 2024.

The company boasts more than 570 million monthly active users, or MAUs, which are attractive for advertisers, affiliate marketers, and potential brand partners.

Above all, Pinterest offers a centralized space for sellers to promote products and for advertisers to lock onto a particular target audience. This makes it a compelling option from a revenue perspective.

Still, its uneven profit history makes it a challenging investment call.

Does Pinterest pay a dividend?

As a growth-focused company, Pinterest does not pay a dividend to its shareholders.

This doesn't necessarily mean that Pinterest will never pay a dividend, but it's a safe bet that they won't be paying one anytime soon.

Will Pinterest's stock split?

It's impossible to know if Pinterest's stock will split at some point in the future, but we do know that it hasn't split yet and doesn't have a split scheduled in the near future. As long as Pinterest shares can be had at a reasonably accessible price, a split remains unlikely.

The bottom line on Pinterest

Pinterest common stock can make sense for some investors, but others might feel that the risks are too much to bear.

No matter what you ultimately choose to do, make sure that you've first done your own research on the company and that you've made a commitment to holding the stock for the long term if you choose to buy it.

A long-term horizon is key to successful investing and wealth creation. Once you make an investment decision, be prepared to hold it for a significant period of time to take full advantage of the potential benefits.

If investing directly in a company's common stock feels unnecessarily risky, consider adding ETFs or mutual funds to your portfolio for diversification.

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