PINS - Pinterest: Shoppable Features Healthy Financials And A Bullish Future - Cautious Buy

2024-05-23 21:45:35 ET

Summary

• Initiating coverage with a cautious Buy based on Pinterest healthy financials, growth projects, and affluent user base. However, near-term volatility is possible due to approaching high resistance levels.
• The platform is experiencing growth with a record high in users and revenue, driven by strong user engagement and the Gen Z demographic.
• Pinterest's focus on tools like direct links and improved ad measurement, as well as investments in AI, position it well for future growth in ad revenue.
• My analysis specializes in identifying companies that are experiencing growth at a reasonable price. Rating systems don't consider time horizons or investment strategies. My articles aim to inform, not to make decisions.

Investment Thesis

Pinterest (PINS)beat earnings estimates by 42.86% for the last quarter, reporting $0.20 Normalized EPS vs $0.14 expected. In fact, revenue has been increasing at a faster rate than the industry over the last 5 years on a YoY basis. Next quarterly earnings are expected Aug 6 with a projected EPS of $0.28 which is an increase of 33.33% YoY....

For further details see: