You know those price alert emails Amazon.com, Inc. (NASDAQ:AMZN) sends you every time there’s a deal on something you’ve browsed? Pinterest wants a piece of that action.
Pinterest wants to be your shopping go-to. Source: Pinterest.
Last week, the visual network announced a feature that allows users who’ve pinned a for-sale item to their feed to be alerted when the price drops. “Product” pins take visuals from certain websites that allow Pinterest to also see price data. Nordstrom and Wal-Mart are among the bigger-name retailers to support product pins as of this writing.
Yet the plan isn’t without holes. Pinterest may have emerged as one of the more important social networks but Instagram still has a huge following while Yahoo! Inc. (NASDAQ:YHOO)‘s social additions to photo sorter Flickr saw a 50% increase in uploads shortly after the latest release in June. Pinterest needs to do more to stand out. Taking on Amazon.com, Inc. (NASDAQ:AMZN) will achieve that, but at what price?
If Pinterest has a built-in advantage it’s that iPad users love the service. Roughly 50% of social activity on the device runs through the image-driven social network, according to ShareThis. I suspect a good chunk of that activity is generated by shoppers posting pictures of recent buys or wants. Real-time price alerts could add up to huge savings for these sorts of consumers, which, in turn, would allow Pinterest to get even deeper hooks into them.
Expect Amazon.com, Inc. (NASDAQ:AMZN) to respond. How? I’m not sure, so I’ll put the question to you: What would you do about Pinterest’s plan if you were Amazon CEO Jeff Bezos? Leave a comment with your best ideas, and then tell us whether you’d buy, sell, or short Amazon stock at current prices.
The article You’ll Never Believe What’s Threatening Amazon Stock Now originally appeared on Fool.com and is written by Tim Beyers.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim’s Web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Amazon.com and Yahoo! and owns shares of Amazon.com.
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