5 Best Social Media Stocks to Buy Now

3. Pinterest, Inc. (NYSE:PINS)

No of HFs: 80
Total Value of HF Holdings: $3.48 Billion

Pinterest, Inc. enables its users to share images and connect through social media. It is designed for users to save and discover information and ideas through images, videos, GIFs, etc. During the third quarter of 2020, the company reported a revenue of $443 million. An insider recently purchased 40,000 shares at around $27. The stock is up more than 151% since then.

In an article, Carillon Eagle Mid Cap Growth mentioned that PINS proved to be a strong performer in the quarter after announcing stronger than expected revenue.

“Pinterest operates a pinboard-style photo-sharing website that lets users create theme-based image collections for events, hobbies, and other personal interests. The firm proved to be a strong performer in the quarter after announcing stronger than expected revenue and user growth, especially outside the U.S. The company is beginning to see a recovery in advertiser spending from retail and consumer packaged goods companies. Additionally, it is benefitting from high engagement levels, new tools for conversion optimization, new shop-able ads, and international growth.”

In a separate article, Choice Equities Capital Management mentioned that the stock is an improving outlook for digital advertising.

“PINS – An improving outlook for digital advertising has also renewed interest in Pinterest. Equally importantly, the company appears poised to take the next steps in its natural evolution to improve on monetization efforts of its valued user base. Unlike other platforms who primarily connect people with each other, many of the things people seek Pinterest for – namely ideas and inspiration – are actually products themselves. Accordingly, the company is rolling out new features that make it easier for their users to find and buy these products. And they are rolling out other new products to continue to improve user engagement as functions like Story Pins enable users to follow multiple pages of step by step instructions for things like tutorials or various DIY projects. With a still yawning gap in the important average revenue per user (ARPU) metric versus the likes of more mature peers like Facebook, continued improvement in this area could drive meaningful profitable revenue growth for years to come.”

Pixabay/Public Domain