Pinterest (PINS) is a perfect example of a terrific business that failed due to investor fears over slowing growth. Its stock dropped 38% before recovering slightly. However, social media stocks are still down more than 20% from their February highs. Now, it trades at $67.23.
Pinterest’s biggest source of concern is its sluggish monthly active-user growth in the United States. However, in my opinion, Pinterest’s explosive growth rate during the worst of the pandemic could not be sustained continuously. As COVID-19 limits are eased, Americans will inevitably spend less time online and more time returning to their daily routines.
Meanwhile, the number of users on Pinterest continues to rise rapidly around the world. Of course, the corporation does not produce as much income per user in other markets as it does in the United States. However, I believe this is an opportunity rather than a problem. I believe that when Pinterest closes the monetization gap, the company will reward patient investors handsomely.
Biotech, Tech, and Crypto reporter
Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.