I bought at 15 and sold at 50. Thinking to buy again soon. Will it reach sub 20?
A summary of the Morgan Stanley Conference from a couple of days ago as well as bits from yesterdayâs Pinterest Presents.
-
There continues to be development around AI, shoppable surfaces, first party data management, automation, and seamless checkout. Native checkout has already gone into beta in the US with select Spotify merchants. There are plans to roll this out on a wider level later in the year.
-
There are also plans to introduce the ability to tag recommended products, as well as introduce affiliate links to products and built-in AR features. Again, Ben stressed that Pinterest is NOT competing with other platforms necessarily for time because it is not Pinterestâs business model.
-
Mobile app users continue to be very resilient and even more resilient than desktop users despite the overall decline in MAUâs. Shopping engagement continues to grow in Q4 2021 vs Q3 2021 and even Y/Y. This resilience is even more prevalent in the gen Z audience which continues to grow.
-
As for Googleâs algorithm changes, Ben noted that Pinterestâs engagement comes mostly from direct traffic such as links and the Pinterest app itself, but still notes that search traffic is important to attract new users. Nonetheless, Pinterest has had to deal with algorithm changes in the past before and has always successfully navigated through it (Q2 2018 and Q2 2021).
-
Pinterest is expected to start monetising advertisements in Japan by the end of the year.
-
Introduction of âYour Shopâ. This basically means that users will see customised shopping surfaces with brands and products based on their activity and preferences on the platform. With Pinterest spend double of those on other platforms, merchants are encouraged to upload their catalogues so that an array of items are available for users. Itâs currently in beta in the US but there are plans to roll it out further later this year.
-
Idea Pins are now starting to get a revenue stream with the introduction of Idea Ads with paid partnerships. Creators on the platform can now tag a business that sponsors them to create an Idea Pin. This feature is going to slowly roll out to more creators as the timeline is to have it widely available by the end of the year.
3 Likes
Idea Pins can now be shared across other social media platforms.
With earnings coming up in less than an hour, I will say that Iâm bullish about results. Nonetheless, I think these main metrics will determine where the stock will go (Apart from how earnings and EPS matches up, obviously).
-
MAUs - Whilst not as important as ARPU, Wall Street continues to misunderstand the Pinterest business model. However, figures provided by Todd in last quarterâs earnings call were positive, and I reckon we could see a recovery here.
-
ARPU - If MAUs and ARPU surpass expectations, this stock could fly. But this would be limited to the guidance given by management. I reckon weâll hear them talk about headwinds which will limit the potential boost in share price.
-
Monetisation streams - Theyâve been harping on about monetising Idea Pins and seamless checkout for the last year or so now. So, if they can show that theyâve managed to make good use of it, itâll definitely boost investor sentiment.
1 Like
Good call! Up 8% in pre market.
1 Like
Wasnât a great quarter as Q1 is seasonally weak, its getting lifted by Meta which is up 18% PM. MAUs have stabilised at 433m for over two months now so pre pandemic growth trajectory is solid, and they are definitely monetising ex-US users. Gen Z users are growing which is definitely not happening at Facebook. If they manage to meet expectations for the year which looks likely they are trading at a PEG < 1 which is attractive.
2 Likes
Pinterest just reported its Q1 earnings results. With a bright future ahead and it beating analystsâ estimates for earnings per share (EPS) and revenue, Iâll be looking to add to my position in Pinterest while its share price stagnates at IPO levels.
Disclaimer: I do not stand to profit in any way from sharing this article or the views I get. I am merely sharing this as an opinion to offer my insight to the stock whilst hoping to contribute to the discussion. These posts have been also been cleared by the mods.
1 Like
Really interesting that Elliott has taken such a large stake, when Elliott comes to play they play hard.
Snap wetting the bed on Thursday brought this back down below $20. Earnings expectations for FY22 have almost halved since the beginning of the year.
Notably Pinterest remain one of the only tech companies not to have announced at least a slowdown in hiring, so one would assume the 35-40% expense growth guide is still on. Q2 guidance in April was around $680m in revenue, current estimates are $672m. Even if they miss expectations for the next few years I have a DCF valuation well into the $30s so I will be buying.
1 Like
Can always rely on SNAP to provide quarterly buying opportunities. Might have to dip in again tomorrow.
Not trying to discourage you, but showing a different opinion to keep your thoughts balanced.
I am not holding SNAP by the way.
EDIT: I just noticed the dip you are talking about is on Pinterest and not on SPAP. Sorry for the misunderstanding mate.
2 Likes
1 Like
The uncertainty surrounding Twitter should provide a tailwind to rival advertising platforms.
Edit: already happening
Edit Deux: Twitter - TWTR - Share Chat - #258 by dk1
âCFO Todd Morgenfeld cited 50% growth (yoy) in shopping ads revenue, which is where the stockâs largest potential lies. He also mentioned that the rate of growth is accelerating, presenting a strong tailwind for Pinterestâs top line moving forward.â
This is a stock just waiting to explode. Genuinely think that this can take on Amazon in the years to come if management steers it in the right direction. Tremendous potential.
1 Like
Pinterest seems to be getting a boost from Temu like Facebook
The top five U.S. advertisers on Pinterest were Amazon.com, Target, PDD Holdings-owned Temu, Walmart and French cosmetics giant LâOreal, making up 29% of the total ad spend in the quarter, Sensor Tower added.