PINS 15% upside potential! Pinterest had a big sell off last week, falling over 7% in a day. This sell off was a result on analyst at Cleveland Research giving it some bad news expecting retail spending to decelerate. This sell off was an overreaction in my opinion, and nothing that should take away from Pinterest in the long term.
Pinterest has been killing the social media game, greatly benefiting from Covid and the lockdown. They added tons of new members to their platform (124 million users in 2020 and 17 million just in the last quarter) and are slowly moving into the e-commerce game. Something spectacular about Pinterest is how they integrate ads into users feeds. Not only are the ads targeted, but they appear on your feed like a normal pin would and don't disrupt the users experience when using the app.
Some more fundamentals to point out:
-48% of American social media users regularly use Pinterest to find and shop for products, according to Cowen & Company, compared to just 10% on Facebook's Instagram and 4% on Snap's (NYSE:SNAP) Snapchat.
-Pinterest is expanding its e-commerce features with shoppable pins, a partnership with Shopify (NYSE:SHOP), shoppable trends, and camera-based searches with its new Lens feature
-Pinterest's revenue rose 48% to $1.69 billion in 2020, even as the pandemic temporarily throttled its ad growth in the first half of the year.
-Analyst expecting a positive Earnings on Tuesday after hours.
Technicals:
-MACD cross on the 3hr and momentum is shifting to upside
-3 white soldiers pattern on the 1 hour chart
-The stock was oversold and in a good buy zone.
Although it could go either way this next week depending on the upcoming earnings, I think PINS has the ability to see a 15% gain in the near term future.
What do you guys think about PINS? Leave a comment below!
