Bear,
“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.
Harley