Pinterest, Inc.
Long

Pinterest | PINS | Long at $26.20

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Pinterest's PINS continued user growth is quite impressive, especially among Gen Z. Factoring in global expansion, the revenue and earnings projections caught my attention. Currently trading around a 9x price-to-earnings, it's kind of a sleeper in the tech world *if* the user numbers and forecasts are accurate. Annual EPS is expected to almost double by 2028, going from $1.29 in 2024 to $2.46 in 2028. Projected revenue growth is almost the same, growing from $3.6 billion in 2024 to $6.3 billion in 2028. Also, the company has a very low Debt-to-Equity Ratio (4%) and very strong cash flow. Projections.

From a technical analysis angle, it's in a consolidation phase - trading sideways and confusing investors. The price is having a hard time staying above or below its historical mean, but there are plenty of gaps above and below the current price to fill. A company like PINS can benefit significantly from AI utilization and capturing a share of the great wealth transfer, but the news is harping on a bad economy / reduced ad revenue.

Personally, this is one of those "why doesn't the price reflect the fundamentals" plays. Yes, there is competition, but the user growth continues to be impressive. Insiders are selling at an alarming rate (http://openinsider.com/PINS), though. Something doesn't add up. So, personally, a decision based on the numbers (as reported today) is the only way to go. Thus, at $26.20, PINS is in a personal buy zone. If this ticker truly tanks and fishy company news emerges, it's going to drop near $12 or below.

Targets into 2028
  1. $32.00 (+22.1%)
  2. $50.00 (+90.8%)

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