Pinterest (PINS) shares are slipping this morning after the forum social media platform confirmed plans of laying off nearly 15% of its workforce and right-sizing office space to free up resources.<\/p>\n
According to the company\u2019s management, it will reallocate these resources to artificial intelligence (AI)-focused products, making the selloff essentially a buying opportunity for long-term investors.<\/p>\n
At the time of writing,\u00a0Pinterest stock is down more than 90% versus its 52-week high.<\/p>\n Long-term investors should consider loading up on PINS today as its announced cuts signal a pivot to efficiency and higher-margin growth.<\/p>\n By reallocating resources to AI-enabled products, the company is positioning itself to improve ad targeting, shoppable content, and conversion rates for advertisers.\u00a0This will help directly lift its average revenue per user (ARPU) in 2026.<\/p>\n In short, lowering headcount and downsizing office space to reinvest in AI mean leaner operations and stronger monetization potential, which makes PINS stock an exciting long-term pick at current levels.<\/p>\n Pinterest shares appear strongly positioned to witness multiple expansion on the back of AI pivot also because they\u2019re currently valued more attractively than peers, including Reddit (RDDT).<\/p>\n While the forum social media platform is trading at a forward price-to-earnings (P\/E) ratio of 57x at the time of writing, PINS is going for a significantly more compelling 34x only.\u00a0It\u2019s partly why options traders believe Pinterest will push meaningfully higher over the next four months.<\/p>\n According to Barchart, derivatives contracts expiring May 15 have the upper price set at nearly $29 currently, indicating potential upside of more than 23% from here.<\/p>\n Wall Street analysts also recommend buying PINS shares on the pullback given the visual search engine is seen improving its earnings per share (EPS) by more than 20% in its current fiscal quarter.<\/p>\n The consensus rating on Pinterest remains a \u201cModerate Buy,\u201d with price targets as high as $45 indicating the social media company could nearly double from here over the next 12 months.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>