Pinterest Q2 outlook improves but Jefferies doubts long-term ad revenue growth

Jefferies maintains a Hold rating on Pinterest with a $21 price target, expecting Q2 revenue growth around 15% year-over-year, potentially hitting the high end of guidance. The firm notes a slight deceleration in organic growth but sees achievable 14% revenue growth in Q3 amid easing comps and tariff refunds supporting ad budgets. Despite this, Jefferies remains skeptical about Pinterest's long-term ability to monetize ads effectively and sustain its platform relevance as AI advances, highlighting fiscal 2026 as an investment year with margin pressures from marketing and R&D spend.