Pinterest, again

I mean, it’s down from an all time high around $37 (in August) to now $11.

Here is some good (recent) reading on PINS from our fellow Fools.
https://www.fool.com/investing/2020/03/04/the-4-stocks-i-bou…
https://www.fool.com/investing/2020/03/11/3-stocks-to-buy-af…
https://www.fool.com/investing/2020/03/11/3-recession-ready-…
https://www.fool.com/investing/2020/03/12/timesensitivewhy-p…
https://www.fool.com/investing/2020/03/16/why-paycom-softwar…

With roughly a $6 billion mkt cap with well over a billion in annual revenue, I just don’t see a lot of long term risk.

Anyone have any thoughts?

Bear

11 Likes

Anyone have any thoughts?

It’s far easier to point out “values” than it is to execute and take a position in today’s markets.

Why not wait 3 to 4 months when we will have a clearer picture of the financial wreckage Covid triggered.

🆁🅶🅱
For not in my bow do I trust, nor can my sword save me.

2 Likes

Why not wait 3 to 4 months when we will have a clearer picture of the financial wreckage Covid triggered.

When I asked if anyone had thoughts, I meant on Pinterest specifically, and especially how it might fare in this current environment. The articles I provided had a few good things to say about that, like:

"This would seem to be a kind climate for Pinterest. It’s not exactly coronavirus-proof, but the sticky platform is certainly providing escapism for folks staying closer to home as they ride out the rapidly growing wave of COVID-19 cases. Pinterest is unique in that it draws a largely female audience, and it’s a market that advertisers will be paying up to reach if the opportunities stall in the real world during the coming months. "

and

Since it is free to use, there’s no reason why a recession would lead to a decline in users. If anything, recessions are filled with negative news, and users could increase time on the platform to get that added boost of Pinterest positivity. A growing user base coupled with increased usage would present a compelling audience to advertisers, which continue spending even during a recession. And there are a lot of opportunities to grow its average revenue per user through ad revenue since it’s currently one of the most under-monetized platforms out there.”

and

"It’s possible that the spread of the novel coronavirus might slow the company down a bit, but I expect 2020 will be another good year for the business."

and

"Advertisers might not have as much money to throw at Pinterest over the next few weeks (or quarters), but it’s possible that the company’s usermetrics could actually get a boost from the coronavirus, since so many people will be self-quarantining at home. If true, that could make the platform even more attractive to advertisers down the road."

It’s far easier to point out “values” than it is to execute and take a position in today’s markets.

I added today.

Bear

11 Likes

In the past few months…

Pins has gone from highs near 27 to 11
Snap has gone from highs near 19 to 8
Twtr has gone from highs near 39 to 21
Fb has gone from highs near 224 to 137

One would have guessed that with some many
peope staying at home the social stocks
would be soaring. There’s a captive audience
and the number of active users must be up.

I realize that many companies are cutting
back on ads but isn’t there at least one
social media stock worth investing in?

I hope that PINS works out for you yet
you may want to evaluate all of them and
consider building a basket of the best.
I’m pretty sure Facebook has a ton of money.

Speaking of FB, today I looked for an Oculus
Quest to entertain my stay at home son and
found the prices soaring. I suspect that has
more to do with closed factories in China than
quality of product… Supply vs demand.

Saul, I do appreciate your board a lot but
with the overall market dropping nearly 10%
per day I’m not sure I’d poke the trolls too
much. By the time I looked at our stocks
(your pics) today many of them were down
just as much as much as the rest of the
market (ddog and ttd more so). Of course
that could change in any minute now.

1 Like

Pins is also sitting on over $1.7 billion of cash and no debt. At almost 70% off its highs, you’d think there were bankruptcy concerns. :slight_smile:

Matt

7 Likes

This would seem to be a kind climate for Pinterest

Thank you Bear for sharing this. This EXACT thought popped into my head earlier today. I liked the long term value of PINS when it was in the 20’s. Nothing has fundamentally changed and I expect current users to continue to do so at the same rate if not more so in this environment.

I’m surprised PINS doesn’t have a larger following here.

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I agree. PINS is a unique platform that doesn’t have a direct competitor. It has a fervently enthusiastic and differentiated user base of mostly women. And that base is growing fast, especially internationally. Lots of room to monetize and increase margins over time. Perhaps we are looking at a young FB, but even if it only gets 10% of the way there, we are looking at a massive return.