With close to half a billion active users (and rising), it should come as no surprise that California-headquartered Pinterest currently ranks among the most popular social media networks in the United States.

Globally, Pinterest’s ad revenues are expected to hit $3.73 billion in 2024, marking a 14.1% annual increase. But what does this mean for the company’s valuation? In other words, how much is Pinterest worth?

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Pinterest’s valuation history

A recent analysis of Pinterest’s market cap shows that as of November 2023, the social network is valued at $20.1 billion. This marks a 22.4% increase from its valuation at the end of 2022, which was recorded at $16.5 billion.

According to industry analysts, this growth can be credited to the company’s recently announced ad partnership with ecommerce giant Amazon. Under the agreement, third-party ads from Amazon will be allowed on Pinterest, which the social network says is a response to growing user demand for shoppable content. Buoyed by this move, the company’s stock prices started to trade higher, nudging Pinterest’s valuation upward.

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The rise in Pinterest’s market cap so far in 2023 also comes after falling valuation in recent years. A closer look at Pinterest’s valuation history shows that in 2019, the company was valued at $10.6 billion—nearly half of its current worth. This figure surged by 283.5% in 2020, to $40.7 billion, as a result of the COVID-19 pandemic, which drove up time spent on social media and propelled new sign-ups. That year, the number of Pinterest users grew by 37% year on year.

However, the rise in Pinterest’s market cap was short-lived, as it was followed by two consecutive years of decline. In 2021, Pinterest’s value dipped by 41.8%, to $23.7 billion, before another fall of 30.6% the year after further shrunk its value to $16.5 billion. 

This devaluation came as social media platforms came off their growth momentum spurred by the pandemic. Pinterest aside, other major social networks also experienced user declines and slow growth. This includes Facebook, whose number of daily active users fell for the first time in 18 years. Parent company Meta also saw $390.2 billion wiped off its valuation in 2022, as its market cap fell by 41.7%.

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