Pinterest: Spending To Win Social Commerce
- Pinterest reported a solid quarterly beat for Q1'23, but the company only grew revenues by 5%.
- The stock fell after hours due to guidance for double-digit operating expense growth in Q2'23, but the company needs to invest aggressively in enhancing the shopping experience.
- Pinterest quickly becomes cheap as the stock dips to 4x forward EV/S targets.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The market doesn't like the Q2'23 guidance from Pinterest (NYSE:PINS), but the numbers are clear that the social imaging company needs to spend to win the large market opportunity. The company has a large user base that is currently being vastly under monetized suggesting more spending is needed. My investment thesis remains ultra Bullish on the stock following the after-hours dip.
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