Baron Funds on Pinterest (PINS): “We Remain Encouraged by the Long Runway for Growth”

Baron Funds, an asset management firm, published its “Baron Opportunity Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 2.03% was delivered by the fund’s institutional shares for the third quarter of 2021. For the period, the Fund trailed the Russell 3000 Growth Index, which rose 0.69%, and the S&P 500 Index, which increased 0.58%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Opportunity Fund, in its Q3 2021 investor letter, mentioned Pinterest, Inc. (NYSE: PINS) and discussed its stance on the firm. Pinterest, Inc. is a San Francisco, California-based technology company with a $26.4 billion market capitalization. PINS delivered a -38.51% return since the beginning of the year, while its 12-month returns are down by -40.82%. The stock closed at $40.52 per share on December 08, 2021.

Here is what Baron Opportunity Fund has to say about Pinterest, Inc.  in its Q3 2021 investor letter:

“Visual search, discovery, and inspiration platform Pinterest, Inc. detracted from performance after the company provided disappointing monthly active user engagement metrics despite a strong quarter financially (revenue growth of 125% and almost 30% operating cash flow margins). As the economy reopened and COVID-19-related restrictions were lifted, user engagement for web users (who tend to be less engaged and generate less revenue) declined. At the same time, the company pivoted to a new videobased engagement model, called Idea Pins. The transition to Idea Pins (not yet monetized) may cannibalize some monetized engagement in the near term, thus penalizing short-term revenues, but we remain encouraged by the long runway for growth as Pinterest improves its platform and expands internationally.”

Photo by Souvik Banerjee on Unsplash

Based on our calculations, Pinterest, Inc. (NYSE: PINS) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PINS was in 58 hedge fund portfolios at the end of the third quarter of 2021, compared to 63 funds in the previous quarter. Pinterest, Inc. (NYSE: PINS) delivered a -25.53% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.