Pinterest: Bargain Bin

 

  • Pinterest hasn't seen much of a bounce after solid Q1'22 results with a market stuck on user growth issues.
  • The company has the ability to vastly expand the monetization of the user base.
  • The stock is cheap at less than 4x '23 revenue targets with a path to far higher revenues over time with or without future user growth.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

As the social media space faces drama with the Twitter (TWTR) buyout by Elon Musk taking a different twist every day, the market mostly ignored the better than feared Q1'22 results by Pinterest (NYSE:PINS). A research report suggesting the digital ad market will more than double by 2026 makes Pinterest a strong investment target after normalization following Covid pull forwards. My investment thesis remains very Bullish on the stock trading back close to the lows.
Read the full article on Seeking Alpha. 
Disclosure: Long TWTR. Please review the disclaimer page for more details. 

Update - May 23

Interesting test of the lows tomorrow on the $SNAP news.

-Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range. We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.


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