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Pinterest - Placing The First Pin

Aug. 01, 2021 1:32 PM ETPinterest, Inc. (PINS)11 Comments


  • Pinterest has seen a huge sell-off as it sees lower active users in the US.
  • This is largely driven by pandemic trends, with the economy opening up again.
  • This is causing nerves among investors, but rapid ARPU growth should drive continued growth, even if some of these user base declines last.
  • Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »
Pinterest Homepage
seewhatmitchsee/iStock Editorial via Getty Images

Pinterest (NYSE:PINS) announced second quarter results which were not well received by the market, triggering quite a big sell-off, which interests me as I consider Pinterest among the least annoying and still largely underpenetrated social media companies out there.


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This article was written by

The Value Investor profile picture
The writer is a long term value investor and M.Sc graduate in Financial Markets with over 10 years experience. Value can be found in both long and short ideas and uses options to enhance the risk-return profile of investment ideas. Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PINS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (11)

Kyle Fishman profile picture
long PINS since IPO.
listening to earning call and you can see a slight shift in engagement strategy with Ideas. Ideas will be video based versus search based and videos have a higher engagement factor than search does (think Youtube vs. Twitter). Longer engagement generally drives better MAU monetization. Drop is buying opportunity for a better long term business model.
How can $PINS increase MAU?
@MooneyMooney start spamming... sorry, "re-engaging" everyone who has ever shared her email with the company, just like Next Door and others
Alex Pitti profile picture
Stock trades on MAUs. It's a fantasy to think it will do well if MAUs fall.

You can be bullish on Pinterest, but if you are bullish, you need to be bullish on MAUs. There's no other option.
@Alex Pitti agree Pins need to absorb more US users . we need to see 100M users before 2023
Definitely a great buying opportunity for me!
Thank you for your well considered and useful commentary. I appreciate it. Do you have any insight about Pin's strategy for negotiating the shifting waters of privacy (IDFA, Cookies, etc.)? Apparently (so far,) the company seems to be negotiating these waters well.
Thanks for the article. I opened an options position in PINS on Friday after the sell off bc I believe the market significantly overreacted to the decrease in MAUs. From a purely technical perspective there is a high statistical likelihood of a price increase to at least the $70 range due to mean reversion and the need to fill the large gap downward.
Yuppp profile picture
@Zer0SumGains Crazy and odd chart with this sell off. Friday opened at nearly exact price as after/pre hours and proceeded to trade 76 mil share within approx $1 range the entire day long. Looks like someone drew a line with a ruler. I look for a price increase on Monday as well.
Research+nut profile picture
The possibility of a future upside is worth the risk. I will hold and have patience on this one! It’s worth the wait.
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