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Can you buy stock in Pinterest?
The idea-sharing platform Pinterest was one of the buzziest initial public offerings last year: The company went public in April 2019, which means investors can now buy Pinterest stock under the...
Should I invest in the Pinterest IPO?
Similar to Uber and Lyft, the Pinterest IPO is the latest startup “unicorn” to make Wall Street jump with excitement. And even though Pinterest shows potential, we cannot recommend buying its stock at the IPO.
How do I invest in Pinterest?
- What factors will determine the date of Pinterest’s IPO?
- What are the company’s plans for allocating IPO revenue?
- Does Pinterest have strong competition for market share?
- What are its prospects for growth?
- Does current management have experience with running publicly traded firms?
- What are the company’s goals in terms of profitability and innovation?
Is Pinterest profitable?
Pinterest saw its stock surge after an unexpectedly strong fourth-quarter earnings report on Thursday. The company reported its first full-year profit and more than $2 billion in annual revenue — up 52% from 2020. Fourth-quarter revenue rose 20% year ...
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Is Pinterest a good stock to buy?
Despite fewer people on its platform, 2021 revenue came in at almost $2.6 billion, a 52% increase from year-ago levels. Moreover, Pinterest reported a profit of $316 million for the year, a considerable improvement over the $128 million loss in 2020.
Should I hold Pinterest stock?
25 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Pinterest in the last twelve months. There are currently 19 hold ratings and 6 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" Pinterest stock.
Is PINS a buy now?
Right now, PINS stock is not a buy.
Why is Pinterest stock so low?
Pinterest stock is down due primarily to an decrease in monthly active users. Management is working to drive engagement through creator-generated short videos and a more personalized shopping experience. Shares currently trade at 6.4 times sales, near the low end of their historical range.
Does Pinterest have a good future?
Pinterest had 431 million monthly active users (MAUs) at the end of December. Globally, its average revenue per user (ARPU) in 2021 was $5.79, 36% higher than a year earlier.
How high will PINS stock go?
Average Price Target Based on 23 Wall Street analysts offering 12 month price targets for Pinterest in the last 3 months. The average price target is $28.19 with a high forecast of $38.00 and a low forecast of $20.00.
Is Pinterest a long-term buy?
Such is the case with all stock market investments, there is always a risk, but with the everchanging dynamics that has resulted in more people than ever doing business online, as well as social interaction, Pinterest still stands to be a solid long-term investment for interested buyers, at least for now.
Is PayPal looking to buy Pinterest?
U.S. payments giant PayPal said it is not currently interested in buying social media platform Pinterest. Responding to what it called “market rumors,” the financial technology company said Sunday in an update on its website that it is “not pursuing an acquisition of Pinterest at this time.”
Who would buy Pinterest?
PayPal'sA deal for Pinterest would be PayPal's biggest-ever acquisition, topping its $4 billion purchase of price-comparison app Honey Science Corp.
Will PINS stock recover?
PINS' stock price could see a minor rebound as it experiences accelerating revenue growth in 2H 2022, but returning to the $50 level might be very challenging. I assign a Hold investment rating to Pinterest, as its current valuation multiples appear to be aligned with the company's financial outlook.
Will Pinterest bounce back?
Pinterest Is Due for a Rebound as It Becomes an E-Commerce Destination. Investors in the visual search and social media platform Pinterest (NYSE:PINS) kicked off 2022 in a swirl of bearish sentiment. Since January, PINS stock has slipped more than 32%.
How does Pinterest make money?
Pinterest sells targeted ads called “promoted pins” that appear at the top of users' feeds and search results. Those ads brought in about $3 per user in 2018. It also sells click-to-buy shopping ads to businesses and hundreds of retail partners.
What is a MAU on Pinterest?
Pinterest defines monthly active users (MAU) as people accessing or interacting with the platform at least once in a calendar month. In the second quarter of 2020, Pinterest grew MAU both internationally and domestically. Globally, MAU surged 39% year over year to 416 million.
Is Pinterest a business?
If this were just about saving pictures, then Pinterest would be a less exciting business. But increasingly, the platform is developing new use cases to drive value for both users and businesses. Specifically, Pinterest recently partnered with Shopify to bring product catalogs into the experience in a native way.
1. A massive market opportunity
As you might already know, Pinterest's app is free to join and use. It makes money from advertisers willing to pay for the privilege of marketing its products and services to people browsing Pinterest. Of course, the more people they can reach, the more marketers are willing to pay.
2. Profitable on the bottom line and cash flow positive
In its fiscal year 2021, Pinterest is making significant strides in profitability and free cash flow. From 2017 to 2020, Pinterest lost over $1.5 billion on the bottom line. In 2021, it was turning the corner on profitability. In the nine months ended Sept. 30, Pinterest has earned $141.7 million in net income.
3. Bargain price
Investors have been focused on Pinterest's decreasing number of monthly active users despite the good news on profitability, cash flow, and an expanding market opportunity.
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The one reason not to buy may carry just as much weight as the three in favor
Pinterest ( PINS -1.25% ) is having a tough start to 2022. The stock is already down nearly 30% year to date. The image-based social media site benefited when folks were spending more time at home in the early stages of the pandemic.
1. A massive total addressable market
Pinterest is in the advertising business. Its app is free to use. The company encourages folks to join the site, visit frequently, and spend plenty of time on each visit. Those actions allow Pinterest to show users advertisements -- and there's plenty of room to expand that greatly.
2. Its users have shopping in mind
Pinterest is a unique social media site in that folks come to it with commercial intent. People are not there to communicate with friends, post pictures, or catch up on the latest news. Instead, the occasions that cause people to visit Pinterest are related to doing something.
3. Pinterest's stock is inexpensive
Pinterest's stock is a lot less expensive than it used to be -- down 30% so far in 2022 and more than 70% from its 52-week high. Such a steep sell-off could be an opportunity for long-term investors.
A reason to pause before buying the stock
Still, there may be reason to pause before buying Pinterest's stock. The company has shed monthly active users (MAUs) for three consecutive quarters, falling from 478 million MAUs to 431 million as of Dec. 31, 2021.
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But Pinterest Has Some Growth
While the company saw a surge in users due to Covid-19, it’s now having trouble with user growth as the world continues its return to something closer to normal.
The Company Is Also Profitable
In addition to its revenue growth, PINS stock trades at 31 times next year’s earnings estimates. While that’s not screamingly cheap, it’s important because it implies one key observation: Pinterest is profitable. The company earned 42 cents a share last year and is forecasted to earn $1.10 a share this year.
PINS Stock Is Oversold
Last but not least, we have the charts. The technicals are not shouting out any sort of “must-buy now!” signals. In fact, PINS stock looks downright dreadful, as do many growth stocks.
The stock price continues to increase, but these important company metrics continue to rise as well
A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.
It's simultaneously growing revenue and users
The first thing about Pinterest that intrigued me is its remarkable revenue growth. In its young history as a public company, it grew revenue by 60% in 2018 and 51% in 2019.
Planning ahead
The position I started was a small one compared to the rest of my portfolio. I plan to add more shares if the company continues to improve in any of those three primary metrics discussed earlier. Additionally, I am prepared to add more to the position if the stock price falls by more than 10% as part of a broad market decline.
How much is Pinterest stock trading in 2020?
As of October 2020, Pinterest shares are trading just below $50, an all-time high for the company.
When did Pinterest go public?
The idea-sharing platform Pinterest was one of the buzziest initial public offerings last year: The company went public in April 2019, which means investors can now buy Pinterest stock under the ticker symbol PINS.
About Pinterest
Pinterest, Inc. engages in the operation of a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. The company was founded by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp in October 2008 and is headquartered in San Francisco, CA.
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Can Pinterest Stock Rebound To $50 Levels? Consider Financial Outlook And Valuations - Seeking Alpha
