15. Pinterest Inc. (NYSE:PINS)
Number of Hedge Fund Investors: 61
Pinterest, Inc. (NYSE:PINS) was given an “outperform” rating by Oppenheimer, with a $45 price target. Analysts see strong ad potential, particularly with integrations into platforms of other Investing Club names like Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG). The latest Morning Thoughts post noted that this presents great growth opportunities for Pinterest, Inc. (NYSE:PINS).
“Pinterest was initiated at Oppenheimer with an outperform rating and $45 price target. The analysts see potential from ads, citing integrations with the platforms of Club names Amazon and Alphabet.”
Pinterest, Inc. (NYSE:PINS) is an appealing investment option, supported by solid financial results and growing user engagement. In Q2 2024 earnings report, Pinterest, Inc. (NYSE:PINS) announced revenue of $700 million, a 9% increase from the previous year, along with a net income of $80 million, indicating strong cost management and rising demand for its advertising services.
The platform also saw its monthly active users rise to 490 million, enhancing its attractiveness for advertisers looking to connect with potential customers. To further increase advertising revenue, Pinterest, Inc. (NYSE:PINS) is improving its ad offerings with better targeting options and new ad formats that meet current marketing trends. Recently, Pinterest, Inc. (NYSE:PINS) formed partnerships with major brands to expand shopping features, allowing users to buy products directly on the platform, which positions the company as a key player in social commerce.
Despite challenges in the broader advertising market, Pinterest, Inc. (NYSE:PINS)’s unique visual discovery platform gives it a competitive edge, making it a strong choice for brands aiming to engage consumers in innovative ways.
Alger Mid Cap Focus Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q2 2024 investor letter:
“Pinterest, Inc. (NYSE:PINS) is a social media platform that enables users to search and shop products personalized to their taste, find ideas to do offline, and discover inspiring content. The platform has over 510 million global monthly active users, where over 95 million are in the U.S. We believe the company has the potential to benefit from strong product cycles due to enhanced ad stack improvements and platform optimizations.
Furthermore, its recent partnership with Amazon.com allows Pinterest to tap into Amazon’s extensive merchant base. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal first quarter revenues and raised fiscal second quarter revenues higher than consensus estimates. The company noted that their ad stack improvements and lower-funnel product cycle (i.e., the later stages of a customer’s journey towards making a purchase) are helping to drive incremental spend from large advertisers and consumer packaged goods (CPG) companies.
Additionally, management highlighted plans to introduce new AI driven tools designed to optimize content visibility and campaign efficacy, aiming to enhance conversion rates particularly for small and medium-sized businesses.”
