I have added to PINS in the last few days. I’m not sure why it’s down 25%+ since their great report a month ago
I’m with ya. Revenue growth is strong, and they have only just begun to monetize the international side. I believe even the ARPU in the United States will continue to climb as well. I guess the market is taking a “prove it” approach towards the international ARPU? They’ve got the user base now but they cant just jack up rates by 1,000% overnight.
Also, I remember during the conference call management had stated something along the lines of a 30% or more increase in Ads that were “Pinned” by users - which is a great sign - because not only is the site sticky, but the ads that people are seeing are very relevant to what they are doing/pinning!
I use PINS when I’m looking for ideas. It’s a very useful site for ideas. I’ll share with you that to date I’ve never bought anything through the site. What I have done is click on certain photos or graphics, enlarged them and then photographed them with my iPad then on a great high end printer made really good prints for framing. Yea not exactly on the up and up, but it’s there and not being offered for sale, so I make my own print from mostly old/vintage graphics and photos.
So do either of you guys use the site, or are you basing your bullishness just on their financials. Do you or anyone you know actually buy anything using the site. Obviously people do, but just wondering how you guys feel about the actual user experience of the site. I see all the ads on the site mixed in with any search page so I’m assuming that’s making them money and will continue to make them money.
As I said I love it, just not spending anything on the site. I do own a small position, just not sure I should build this into a larger position.
So do either of you guys use the site, or are you basing your bullishness just on their financials. Do you or anyone you know actually buy anything using the site. Obviously people do, but just wondering how you guys feel about the actual user experience of the site. I see all the ads on the site mixed in with any search page so I’m assuming that’s making them money and will continue to make them money.
I don’t even really use the site but I know many who do. Like you, however, I don’t know anyone buying through Pinterest. I see that as green field, with advertising the primary revenue source for now, and a greatly successful one.
“I still think PINS is a solid holding on their US business, with a huge upside free-roll on their International business which is still in its infancy.”
As an owner of PINS as well, I have been patient, but I think the pullback has been a result of the anemic growth in international ARPU. Perhaps expectations in the market are for a higher international ARPU.
A thought that is not my own states the following: "In the past, I have been a critic of Pinterest’s international ARPU. To be clear, I still see this as an important risk to continually monitor as a disproportional amount of growth is coming from international (80% growth) yet the ARPU is so low, that it could damage operating margins long-term and lead to losses.
What are your thoughts? How long are you prepared to wait to see if PINS works out the international ARPU issue?
I was late to the party on PINS. Thankfully it represents a small portion of my portfolio. I have layered into the position between April '19 and late February '20; trying to “buy on the dips” if that is possible. At this writing, I am down -21.15%.
Personally, given the size of the position, I most likely will put this in my “set it and forget it” column and revisit on a quarterly basis to see if they can work out the international ARPU issue.
Do you or anyone you know actually buy anything using the site.
I dont remember ever clicking on an ad when using google, amazon, or facebook. They seem to be doing pretty good anyway.
Maybe google sponsored searxh results, unknowingly. Which is similar to pinterest in that you search for a specific item and have ads or shopping links associated w that item. Very targeted.
I am just going off numbers…seems snap came back from dead. Not a multi-year hold for me. My vost basis is about 19, so if it gets anywhere near 30 fairly quickly, i will count my blessings and either pocket some/all those gains and move on.
I’m in the same boat with PINS (Peloton, as well). The size of my position makes in a set and forget stock. Feel more comfortable with PINS future than the PTON holding, but like both companies. Just an on-the-dip game now though.
The thing with Pinterest is I first dismissed it because I only come across them when I am doing a google image search, I run across an image, try to go to it, but I wind up on the Pinterest website, which blocks me from going to the page that has the image I want to look at.
So I only saw it as some irritating thing deriving it’s visitors from Google, which I saw as a risk (Google could change the algorithm and push PINS down in the rankings, hitting it’s number of visitors. In fact they highlighted this as a risk).
However as time continues to go on, people seem to actually be going directly to Pinterest through their Pinterest account, not going through Google. And these visitors look through pictures. Not that these Pinterest users are actively attempting to look at advertisements, but I see this as a much, much better way to advertise compared to Facebook, because you can target your advertising to exactly what the Pinterest user is looking for. This will mean high ROI/high cost advertising, meaning Pinterest should do well.
Do you or anyone you know actually buy anything using the site.
87% of Pinterest users have purchased a product due to exposure on Pinterest**; but perhaps not necessarily directly from Pinterest** - Approx. half of Pinterest users have a household income over $100,000 - 1 of every 2 Millennials use Pinterest - Pinterest has been driving the same percentage of product discovery among Millennials as Instagram despite having one-fourth the user base.
Pinterest is not necessarily just an e-commerce company; its business model functions like e-commerce, social media and advertising.
So when you ask; Do you or anyone you know actually buy anything using the site.; that is not necessarily the right question because Pinterest can be a driver of product discovery that leads to the purchase of an item from a third party vendor. In this instance, Home Depot could be advertising in association with Pinterest boards that feature DYI home improvement. Michael’s Arts & Crafts could be advertising in association with Pinterest boards featuring arts and crafts projects.
ANECDOTE: I recently was involved in building an ambulatory infusion center in the midwest. This is a medical clinic where people with certain disease states would come to relax in a spa-like setting while getting medications delivered to them via an IV drip. We were designing the center from scratch. I searched “Medical Infusion Center” on Pinterest as part of our design due diligence. We discovered many ideas and products (infusion chairs, nursing station equipment, etc.) that we purchased through a third party vendor after finding it on Pinterest. Product Discovery and associated advertising for these products can eventually become the leading source of revenue as opposed to e-commerce.
What are your thoughts? How long are you prepared to wait to see if PINS works out the international ARPU issue?
I always re-evaluate each quarter that is reported. (I invest in companies where I believe in the short term AND long term. I think it’s silly to ignore either.)
I see a lot of potential for PINS to deliver some surprising (better than expected) growth in the next few quarters. But if I’m wrong and overall growth rate instead slows, I will likely realize I’m wrong and sell.
I feel like we should be doing that with all of our companies.
I like PINS as well as ETSY. I think both are unique business models that have strong network effects. Waiting for the COVID 19 storms to abate a little, then planning to pick some up.