Pinterest: Big Snap Back

 

• Pinterest reports a mixed picture for Q3'21 with MAUs again down 13 million sequentially.
• The stock is soaring AHs based on solid guidance and a return to user growth in January.
• The stock trades at ~6x sales targets making Pinterest appealing here with a return to user growth and a long path towards higher ARPUs.
• This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

Following the horrendous Q4'21 results from Meta Platforms (FB), the market was fearing the worst from Pinterest (PINS) heading into their quarterly report. The company didn't exactly wow investors with the quarterly numbers, but the stock is soaring on better than feared guidance. My investment thesis is more Bullish on Pinterest in the low-$30s following a 50% decline in the stock heading into earnings.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Feb. 26

Not sure this was the bottom, but Pinterest remains a bargain here. A higher low on the next dip is probably the buying signal. 

Update - Feb. 11

Don't see it happening, but someone is trying to steal $PINS on the cheap. The market isn't giving a deal much credibility, nor should shareholders want it. 

-Pinterest (NYSE:PINS) rose 6.1% after a report earlier speculated that the company could see takeover interest with its shares down about 55% in the past 6 months.
-Pinterest could become the target for a potential takeover again after its shares fell 21% in the past month, Dealreporter speculated earlier in its "morning flash" piece, without citing any sources.
-The report highlighted PayPal's (NASDAQ:PYPL) interest last year in a potential deal with Pinterest, though PayPal in late October said it wouldn't pursue an acquisition of the art-sharing social media network. The report also mentioned Microsoft's (NASDAQ:MSFT) reported interest in a Pinterest deal from early last year, though it seems unlikely at this point given MSFT's pending $68B planned acquisition of Activision (NASDAQ:ATVI).