I saw Pinterest listed on the revenue growth stock screener that was shared and it attracted my interest. Pinterest recently IPO’d in mid-April. The company makes most of its revenue on promoted pins (advertising). The company attracts just over 290 monthly active users.
I was slightly interested in Pinterest a few months ago, and watched a couple of YouTube videos from the CEO. I was not wowed. The CEO is a childhood collector and his idea to make a pin board / idea board is good, but I don’t know if it’s inspiring to me as a business. That’s OK, different things for different people.
I feel like Pinterest is a game-changer in many ways – If you want ideas for a birthday party, or Cub Scouts, or recipes, or home design ideas, Pinterest is your friend. I think it is basically replacing all magazines, such as Better Homes & Gardens, Martha Stewart, etc for the next generations. So the concept has power, and perhaps if Pinterest can effectively replace the magazine trade (and I think it is totally capable) it has potential as an advertising platform.
I’m just not feeling it though. I wonder if they have any plans for video, because if you want to learn to DIY almost anything, there’s a YouTube for it. And that is valuable, too.
Link to investor relations:
Second quarter results are coming on August 1.
I might need to get over myself and take a more serious look at Pinterest. They seem like they are valuable to advertisers, have a strong user base, and are moving toward profitability.
Personally, I have a Pinterest account, but do not use it often.
What are your thoughts on this one? It is definitely a “girly” stock. I feel that Stitch Fix has been under-appreciated by the market and wonder if that will limit the interest in PINS as well.