5 Beaten-Down Tech Stocks to Buy Today for Long-Term Gains

1. Pinterest, Inc. (NYSE:PINS)

Number of Hedge Fund Holders: 56

YTD Decline in Share Price as of June 8: 42.74% 

Pinterest, Inc. (NYSE:PINS) is an American company operating a visual discovery engine, where individuals and content creators post lifestyle inspiration ideas in the form of ‘pins boards’. As of June 8, Pinterest, Inc. (NYSE:PINS) stock has dropped about 43% year-to-date. However, it remains a strong medium among marketers, content creators, and influencers to connect with their audience. In addition to that, DIYs become quite popular when people face a recessionary financial crunch, which can potentially increase traffic on the Pinterest, Inc. (NYSE:PINS) platform. 

On June 1, Morgan Stanley analyst Brian Nowak reaffirmed an Equal Weight rating on Pinterest, Inc. (NYSE:PINS) but lowered the price target on the shares to $21 from $28. He slashed estimates across online ad and e-commerce companies as he adopted a more conservative base case to reflect higher macro and micro uncertainty, the analyst told investors. He now models approximately 13% and 16% year-over-year online ad growth and about 8% and 10% e-commerce growth in 2022 and 2023, respectively.

According to Insider Monkey’s data, 56 hedge funds were bullish on Pinterest, Inc. (NYSE:PINS) at the end of March 2022, with combined stakes worth $1.25 billion. Harris Associates is the leading position holder in the company, with 18.5 million shares worth $456.7 million. 

Here is what Oakmark Fund has to say about Pinterest, Inc. (NYSE:PINS) in its Q1 2022 investor letter:

“We previously had an opportunity to own Pinterest (NYSE:PINS) when the stock sold off during the Covid-19-related downturn, and we were pleased to be able to invest in the company once again at an attractive price during the quarter. Pinterest is an online personal discovery tool that people use to find ideas based on their tastes and interests. Unlike most social media companies, the objectives of users and advertisers are fundamentally aligned on Pinterest. Users find a positive and useful product discovery experience, and advertisers find an audience with high commercial intent and the ability to integrate ads naturally. Although Pinterest had more than 430 million global users as of year-end, the company is still in the early days of monetizing its platform. We believe that its shares trade well below fair value on conventional metrics, such as enterprise value to revenue, as well as when we benchmark its ultimate revenue and margin potential against more mature internet companies.”

You can also take a look at 10 Best Undervalued Dividend Stocks To Buy and 10 Best Recession Stocks To Buy. 

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