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Pinterest: Perspective Matters

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  • Pinterest continues to trade near the lows of 2021 as user questions mount with the tough comps from the COVID-19 shutdowns.
  • The social media platform has grown revenues by 50% in the last year and should maintain solid revenue growth due to higher ARPUs.
  • The stock isn't cheap at 10x EV/S multiple, but investors should buy the company on a market induced dip.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio. Learn More »
The stock market can be a fickle place with a company valued based on the last quarterly results, not the normal growth rates of the business. Pinterest (PINS) is a prime example of a business that boomed during COVID-19 lockdowns and is now struggling with tough comps. My investment thesis is turning more Bullish on the stock after the excess valuations of early 2021.

Read the full article on Seeking Alpha. 

Disclosure: Long TWTR. Please review the disclaimer page for more details. 

Update Oct. 27

Amazingly, Pinterest has fallen $20 following the collapse of the acquisition talks with PayPal (PYPL). The stock is now in the buy zone, but the falling knife move makes Pinterest a stock to avoid for now. 


Finviz Chart

Update Oct. 1

Nice dip to $50 this week, but the downtrend doesn't appear broken. The stock is really interesting at $45. 

Finviz Chart

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