The company’s total U.S. revenue jumped 67% year over year, to $582
million.Its international revenue was up 145% year over year, to $123
million. Pinterest said the increases in both groups were driven by a growth
in average revenue per user. Pinterest said that its U.S. monthly active
users came in at 98 million, an increase of 11% year over year. The
company’s international user base also continued to rapidly expand, up
46% to 361 million.
Microsoft approached Pinterest in recent months about a potential deal to
acquire the $51-billion social media company, the Financial Times
reported, citing people briefed on the matter.A general shift to virtual
interactions leading to increased engagement on social media platforms
benefited Pinterest as well, with its monthly active users jumping 37
percent to 459 million in the fourth quarter.
Pinterest market cap as of February 18, 2021 is $54.05B.
Enterprise Value: 52.47
BUSINESS MODEL AND
- Pinterest is a unique platform with an equally unique business
model that differentiates it from other photo-sharing websites.
- Creates a more personal experience for individual users and
still allows friends of those users to see what they're up to by
checking out their personal pinboards.
- The company views itself as a discovery service, and it helps
its users plan for the future by allowing them to curate images
or a set of images.
For example, one of the top use cases for Pinterest is women
that are planning their future weddings.This focus on discovery
is highlighted by Pinterest's partnership with Apple, which
allows users to discover new apps in the Apple app store.
Tailwinds and Headwinds
Impacting the Business
- Since the pandemic consumer searches on visual search engines have increased 60% compared to a year
- Increase in the number of advertisers favoring Pinterest as 47% users log on to shop which higher as
compared to any other social media platform combined with an increased user activity.
- Pinterest saw an all-time high usage during the pandemic which has attracted advertisers to the platform.
- Due to covid the number of user engaging with the in built shopping platform has seen an 87% increase.
- Fears whether Pinterest will retain users in the post pandemic world.
- Political interference with social media websites such as Facebook regarding data privacy.
Stock is technically bullish because
- Bullish Momentum with 10 week moving average above 20 week moving average and both trending
- The stock recently formed a 10 week long flat base with accumulation between 76.88 and 62.15 price
levels. (which is indicated by above average volume buying and lower volume selling except 20 weeks
moving average retest)
- Last such flat base between 39.64 and 32.49 price levels resulted in a 115% price increase before the