Tech stocks have been on fire this year as the artificial intelligence (AI) boom is providing a significant tailwind to several of the most prominent players in the sector. Some AI-focused companies still have plenty of room to run, so it may not be too late to invest in them. However, investors might also want to consider going against the market and purchasing shares of corporations that haven't performed well this year, provided these companies have significant upside potential. One example that fits the bill is Pinterest (NYSE: PINS). Here is why the social media specialist is worth investing in.

Pinterest has made progress

Despite its unimpressive stock market performance this year, Pinterest has been moving in the right direction on multiple fronts. The company had to deal with a slowdown in the advertising market and declining monthly active users (MAUs) a couple of years ago, but the social media giant has mostly put these headwinds in the rearview mirror. In the second quarter, Pinterest's MAUs increased by 12% year over year to 522 million -- a new record for the company.

Growing its ecosystem is key for Pinterest: The more users on its platform, the more attractive it becomes to companies looking to launch ads to target specific customers. Pinterest's revenue in the second quarter jumped to $854 million, 21% higher than the year-ago period. Even better, Pinterest has turned a profit. The company's net income of $8.9 million was much better than the net loss of $34.9 million reported in the year-ago quarter.

With financial results like these, why isn't Pinterest performing better on the market? The company's shares dropped on the heels of its second-quarter earnings report partly because investors didn't like management's guidance for the third quarter, which projected slower top-line growth. The market is forward-looking, they say, but perhaps, in this case, it isn't looking far enough into the future.

In my view, Pinterest remains an excellent long-term bet despite whatever short-term challenges it might encounter this year. Here is why.

The long-term view

Pinterest's 522 million MAUs likely haven't peaked. True, the company has plenty of competition in the social media industry, but there is room here for multiple winners to coexist, as they have been doing for a while. Pinterest is different from most leading social media platforms. Its visual flavor and desire to avoid dividing social or political issues make it unique among its peers. So, there is still massive growth potential ahead, especially as it makes progress in international markets.