There are many of us inventories that I suggest are exhilarating, but not all of them look so budget-friendly now. One that I rather like, despite the recent profits, is Pinterest (Nyse: pins). It may not sound like in the world technological supplies such as NvidiaBut its valuation indicators and the development of artificial intelligence (AI) definitely make it an exhilarating proposition.

Let’s take a closer look.

Pinterest world

Pinterest has a robust enhance in 2025, and revenues in the first quarter increased by 16% to USD 855 million, and lively monthly users reach a record 570 m. Quick AI reception by the company has a clear impact. New visual search models based on AI improve content recommendations and make purchases more acceptable to users, which increases better results for advertisers and helps in gaining participation in the Pinterest market.

AI helps analyzing huge amounts of user data to predict flavors and trends. This enables Pinterest to support highly personalized content and ads with which users are more likely to engage. This leads to higher click rates and a better return on investment for advertisers. I would also expect an enhance in imaging made by AI, which will lend a hand users find the results they are looking for.

However, the development/still developed commercial policies in the US led some e-commerce advertisers from Asia to reduce their digital expenses on advertising. This created miniature pockets of weaker demand. Despite these challenges, the wider Pinterest growth trajectory seems robust. Anticipating the end game for the American trade policy is not straightforward, but I would be surprised if it really undermined the business model of American companies such as Pinterest.

The valuation indicators are very attractive

Pinterest’s valuation develops rapidly when its enhance accelerates. It is expected that the forward price indicator (P/E) will drop from 17.2 times in 2025 to 11.98 to 2027, and you low level 7.54 to 2028, reflecting a robust enhance in consensus earnings and improvement of profitability. These are really robust numbers.

Price ratio to profit to height (PEG), which measures P/E in relation to height, is 0.53. This is an extremely low number and much below the median sector 1.41. This simply indicates that Pinterest is cheaply valued, taking into account his expected extension of earnings.

Importantly, Pinterest maintains a robust balance, with USD 2.6 billion in cash and only USD 144 million, which gives considerable net flexibility and financial flexibility. This vigorous capital structure is additionally the basis for its ability to invest in growth and weather all market variability. It also means that over 10% of its market capitalization is covered by net cash.

Lower line

Pinterest may be underestimated, taking into account the nervousness of commercial policy in the US, and also because the company’s margins are a bit gaunt. While the gross margin is about 80%, the EBITDA margin is closer to 5%. This suggests that it can go from a profit to loss.

Nevertheless, it does not stop me from being stubborn. In April I added this supply to my portfolio. I can buy more.