Pinterest: You Were Warned
Pinterest dipped 20% following investor disappointment over Q3 results.
The company actually generated strong revenue and MAU growth showing the existence of a good business.
The market remains partially offside on Pinterest by not using the fully diluted share count of 651 million shares.
Based on the other social stock valuations, my ideal target remains ~$15.
The general impression from the Q3 results for Pinterest (PINS) was a solid quarter. The stock fell up to 20% following the report as the problem was the valuation was priced for perfection. Even strong revenue growth wan't enough to keep the stock valuation above $15 billion and investors shouldn't expect much upside with the stock still at $20.
Read the full article on Seeking Alpha.
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