PINS

Pinterest, Inc.

TMT


Presented:04/06/2020
Price:$15.21
Cap:$8.71B
Current Price:$33.67
Cap:$23.10B

Presented

Date04/06/2020
Price$15.21
Market Cap$8.71B
Ent Value$8.99B
P/E RatioN/A
Book Value$3.55
Div Yield0%
Shares O/S572.62M
Ave Daily Vol14,768,814
Short IntN/A

Current

Price$33.67
Market Cap$23.10B
Pinterest, Inc. engages in the operation of a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. The company was founded by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp in October 2008 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG, GOOGL), Facebook Inc (FB), Pinterest Inc (PINS), Snap Inc (SNAP), Twitter Inc (TWTR)

Highlights

The presenter is long shares of Pinterest Inc (PINS), which has seen its share price fall ~40% in the last couple months and more than 50% from H2’19 highs. According to the presenter, the major price decline can be attributed to a few factors. Starting with a top-down analysis, there is concern around the health of the advertising market, and the presenter’s due diligence finds these worries legitimate over the short term. Within the ad space, many investors feel that PINS is more exposed to a weak ad market than its comps since PINS is currently more experimental and less direct response-focused. Therefore, it seems reasonable to many that ad dollars would come out of PINS (or SNAP) before other social media platforms. While the presenter doesn’t disagree with this logic, his long position is not based on a short-term thesis. To him, this position is based on a longer-term and structural view that PINS’s valuation discount to peers will diminish. As the company continues its impressive growth, its ad platform build-out, and uniquely benefits from industry evolution, the presenter expects PINS to trade at 7x his 2022 revenue estimate, implying share price appreciation to the mid-$30 range over the next 12 – 18 months.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.