Pinterest stock outlook: Upside to $33
Pinterest, the popular social media platform that allows users to discover and save ideas, has been on a rollercoaster ride since its initial public offering (IPO) in April 2019. The company’s stock price has fluctuated wildly, with investors unsure of its long-term potential. However, recent developments suggest that Pinterest’s stock outlook is looking up, with the potential for significant upside in the coming months.
One of the key factors driving Pinterest’s stock price is the company’s strong user growth. In the first quarter of 2021, Pinterest reported 478 million monthly active users, up 30% year-over-year. This growth is particularly impressive given the challenges posed by the COVID-19 pandemic, which has disrupted many social media platforms. Pinterest’s focus on home decor, cooking, and other at-home activities has resonated with users stuck at home during the pandemic, and this trend is likely to continue even as the world returns to normal.
Another factor driving Pinterest’s stock price is the company’s expanding advertising business. In the first quarter of 2021, Pinterest’s revenue grew 78% year-over-year, driven by a 30% increase in average revenue per user. This growth is due in part to Pinterest’s efforts to improve its advertising platform, making it easier for businesses to reach their target audiences. As more businesses turn to Pinterest to advertise their products and services, the company’s revenue is likely to continue to grow.
Finally, Pinterest’s recent acquisition of the shopping app, Tastemade, is another positive development for the company. Tastemade’s technology will allow Pinterest to offer more personalized shopping recommendations to its users, which could drive increased engagement and revenue. Additionally, Tastemade’s team of content creators could help Pinterest expand its content offerings, making the platform even more attractive to users and advertisers alike.
All of these factors suggest that Pinterest’s stock outlook is looking up, with the potential for significant upside in the coming months. While the company’s stock price has been volatile in the past, investors who are willing to take a long-term view may be rewarded with significant gains. With a strong user base, expanding advertising business, and recent acquisition of Tastemade, Pinterest is well-positioned to continue growing and delivering value to its shareholders. As such, investors may want to consider adding Pinterest to their portfolios as a long-term growth play.