Jim Cramer’s Latest Game Plan: 15 Stocks to Watch

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5. Pinterest, Inc. (NYSE:PINS)

Number of Hedge Fund Holders: 61

Talking about Pinterest, Inc. (NYSE:PINS), Cramer said that affiliate plays have the potential to advertise to hard-to-reach audiences.

“Pinterest reports and it’s coming on the heels of an amazing quarter from Reddit. Maybe there’s new money coming toward Pinterest too. These are affiliate plays that are, I think, have a great niche market for advertisers trying to reach hard to get people.”

Pinterest (NYSE:PINS) operates as a visual search and discovery platform, designed to help users find, save, and share ideas across a wide range of interests, from recipes and home décor to fashion and DIY projects. The platform’s primary function is to allow users to explore, save, and shop these ideas, creating a user-powered cycle that fuels its advertising algorithms.

This user-generated content makes its first-party ads effective. One of the key features of the platform is its ability to showcase “shoppable” pins, allowing users to purchase products directly from pinboards. This feature has made the platform particularly attractive to retailers, many of whom have uploaded their entire product catalogs to Pinterest.

In 2023, Pinterest expanded its advertising approach by partnering with Amazon and Google’s parent company, Alphabet, allowing third-party demand alongside its exclusive first-party advertising model. As CEO Bill Ready mentioned during the Q2 earnings call, Pinterest is still in the early stages of integrating third-party ads into its platform.

In the second quarter of 2024, Pinterest (NYSE:PINS) reported a 12% year-over-year increase in Global Monthly Active Users (MAUs), reaching 522 million users. In the future, the company seeks to become a key player in e-commerce. It has made significant strides in this direction by using AI-powered algorithms to recommend relevant shoppable content to users based on their preferences. This personalized approach helps encourage user engagement and purchasing behavior.

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