money Why investors should consider buying Pinterest stock
Yahoo Finance’s On The Move panel weigh in on the latest stories making headlines.
Video Transcript
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JULIE HYMAN: It is time for "Word on the Street" where we check in with our panelists, find out what stories they are watching. And Dan Roberts, as I mentioned before the break, you are covering a company that you might call the quieter unicorn or the forgotten unicorn whose stock hit a record yesterday. Give us the big reveal, who is it?
DAN ROBERTS: Yeah, it's Pinterest. And, you know, there's been a lot of talk about Pinterest, it's certainly not unheard of. But amid the larger unicorn death march, you know, we saw the disappointing results for a while after Uber and Lyft. And so those other much hyped IPOs, I think Pinterest is kind of quietly, intentionally, thanks to CEO Ben Silbermann, avoided much of the overhype.
It went public April 2019. The stock is up 87% this year amid the pandemic. And yesterday, it hit an all-time high. It also got a UBS upgrade. Some bright spots there for Pinterest, the ad revenue on Pinterest is still growing, it is up 4% last quarter. Kind of slow, but steady growth. Now, the monthly active users are a little more flat, a little more alarming.
And the biggest knock I could say is I still haven't really seen the big transformation that Pinterest bulls have said is coming, where they say, you think of Pinterest as mostly wedding content and mostly female users, but soon, everyone's going to be using it, men too. I haven't seen that yet. But that said, the stock has just quietly performed very, very well. And I think avoiding the hype was by design for this company.
JULIE HYMAN: Yes, well. It has worked out well, to your point thus far.
