Billionaire Paul Singer’s 10 Stock Picks with Huge Upside Potential

5. Pinterest Inc. (NYSE:PINS)

Elliott Management’s Stake: $812 million

Number of Hedge Fund Holders: 73

Average Upside Potential as of May 8: 44.48%

Pinterest Inc. (NYSE:PINS) is a visual search & discovery platform that allows people to find ideas, such as recipes, home, and style inspiration. It also allows them to search, save, and shop the ideas. The company offers various advertising products to help advertisers meet users, and an ad auction that allows advertisers to serve ads to users at relevant moments to optimize business outcomes.

In Q4 2024, Pinterest achieved its first $1 billion revenue quarter with 18% revenue growth, which was partly driven by a record number of clicks during the holiday season. The platform’s weekly active to monthly active user ratio also reached an all-time high of 62% in 2024. This success was further fueled by improvements in the company’s advertising platform.

Clicks to advertisers grew over 90% in Q4, even after lapping the initial launch of direct links from the previous year. Pinterest Inc. (NYSE:PINS) focuses on actionability, relevance, and curation, while distinguishing itself as a positive place online. For 2025, management plans to use AI and its unique first-party signal to drive more personalized experiences.

Renaissance Large Cap Growth Strategy stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q4 2024 investor letter:

“We made several changes to the portfolio in the fourth quarter. Most recently, we added a new position in the Communication Services sector in December with Pinterest, Inc. (NYSE:PINS), a leading visual search and discovery platform with a unique curation function that enables users to find and display new ideas and creations that focus on interests such as fashion and home décor among other consumer goods. Since 2022, a new management team has transformed Pinterest into a shopping platform, providing more value and capabilities to advertisers includ ing direct connection with users, resulting in higher profits. In addition, the company was an early adopter of AI to increase personalization, advertising relevance options, and automated processes to increase ease-of-use for smaller advertisers. In the near term, we expect Pinterest to see monetization improvements with upside to Average Revenue Per User (ARPU) and traction in new categories and international markets.”