Stock price when the opinion was issued
It has been under new management for 3 years which has improved its service and incorporated AI.. It can place the number of ads at a more frequent rate that still allows the consumer to remain engaged. This is a growth at a reasonable rate opportunity. Trades at 21X this year's earnings. Revenue is growing 15 to 16% and earnings are growing faster. The valuation is less than the market but it is growing at double the market.
Buy 34 Hold 8 Sell 0
It is growing revenue at 15% year over year amd trading at 18X this year's expected earnings. The catalyst has been new management in mid 2022 making good improvements to the top line and using AI to increase the relevancy of its content. Increased usage and increased advertising which is more relevant to its users means higher revenue. Buy 33 Hold 8 Sell 0
(Analysts’ price target is $46.59)
It is doing well from a customer product basis and has the second fastest growth rate of all the players. Elliott Management is the owner of the most active hedge fund in the world and Pinterest is its fifth largest position. It has loaned Pinterest $1 billion at 1.7% to buy back stock and can convert its loan to stock at $22.72. So, they are owners and on the board. Pinterest has catered to larger companies which have pulled back resulting in lower revenue in quarterly results. They now want to go after small to mid size businesses.