Pinterest Could Benefit Long-Term Investors The platform will need to find new ways to attract users, add revenue-generating ads to content, and crucially improve technologically to catch up with Tik Tok’s famously successful algorithm.
Competition from TikTok in particular poses a serious threat to Pinterest. Some investors have written off the company as a dinosaur that has already outlived its usefulness. How can a company’s stock price fall so much even as sales are rising? Financially, Pinterest has done very well even as it lost users. For instance, 2021 Q4 revenue grew 20% year over year to $847 million. The pessimistic outlook disregards some important points. Despite that, today’s stock price is almost exactly what investors paid in 2019. After all, the company makes much more money and has doubled its number of users since 2019. It seems ridiculous to suggest that Pinterest has the same value today as in 2019. Morgan Stanley paints a bleak picture for Pinterest. Pinterest Has Potential Opportunities for Recovery Although Pinterest was generating higher revenues, the amounts did not meet Morgan Stanley’s projections.įrom Morgan Stanley’s perspective, Pinterest became a stock to sell because it was losing active users, and users who remained on the platform were spending less time there. It certainly didn’t help when Morgan Stanley publicly complained that Pinterest had “too much uncertainty.” Morgan Stanley expressed disappointment in the company’s revenues. As a result, they started selling their shares and prices fell even faster than user numbers. They worried that Pinterest had peaked and didn’t have any room for growth.
Some investors, however, read a lot into the reported numbers. Since Pinterest started losing active users, it makes sense that its stock price would slip slightly. The fourth quarter of 2021 shows that Pinterest had 431 million active monthly users around the world. It dropped to 454 million during Q2 2021 and continued its fall to 444 million in Q3. Unfortunately, the number of monthly active users started to slip after the first quarter.
Users peaked during the first quarter of 2021 at 471 million users. Each quarter brought more users to the platform. That number grew as the pandemic worsened. While some social media sites felt depressing, Pinterest could lift spirits.ĭuring the fourth quarter of 2019, Pinterest had about 335 million worldwide active users.
PINTEREST STOCK TODAY HOW TO
The picture-based platform might have succeeded more than many competitors because it fosters inspirational themes, such as learning how to cook well. Like many other social media companies, Pinterest reaped the benefits of audience’s increased attention over the past few years.
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