This Tiny Social Media Stock May Deserve a Second Chance

When most people think about social media stocks, they immediately think of Meta Platforms, the owner of Facebook, Instagram, and WhatsApp. However, there is a smaller social media stock that recently delivered solid earnings and looks poised for a comeback.

Pinterest (NYSE: PINS) remains well below the all-time high it touched in 2021, and is down by more than 20% year to date. However, that price movement does not reflect the fundamental improvements that the image-focused platform is making in its business.

Image source: Getty Images.

Pinterest has been silently gaining momentum

In Q1, Pinterest reached 631 million global monthly active users, an 11% year-over-year increase. That's a solid showing in its own right, but it was not a one-time blip. Pinterest has delivered double-digit percentage user growth for 10 consecutive quarters.

It's harder to compare Pinterest's user base directly with those of Meta Platforms or Reddit, since those tech companies report daily active users instead of monthly active users. Pinterest is still growing in North America and Europe, but most of its growth is coming from other parts of the world.

The number of monthly active users from countries outside North America and Europe was up by 15% year over year. If Pinterest can continue to penetrate international markets, it can maintain high growth rates for an extended period of time. The company is targeting 14% to 16% year-over-year revenue growth in Q2, suggesting that its efforts are still bearing fruit.

Revenue growth is outpacing user gains

Pinterest has delivered steady user growth, but the more impressive part of the long-term thesis is that its revenue growth rate regularly exceeds its user growth rate. For instance, its 11% increase in global monthly active users last quarter came with 18% revenue growth.

Average revenue per user grew across all regions, showing that Pinterest is succeeding at generating more revenue from every user while attracting more people to the platform. Management cited its AI-powered ad platform as the reason its revenue continues to trend upward.

Revenue growth also outpaced user gains in 2025. The company delivered 16% revenue growth in 2025, compared with a 12% increase in global monthly active users. It continues to deliver double-digit percentage revenue growth rates. Although the company was unprofitable in Q1 due to restructuring costs, it has a history of generating healthy margins.

For instance, in 2025, Pinterest generated $4.2 billion in revenue and $417 million in net income, resulting in a 10% net profit margin. Profitability should improve for the rest of the year as its restructuring costs are in the rear-view mirror and its AI-powered advertising platform continues to drive results.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Pinterest, and Reddit. The Motley Fool has a disclosure policy.