Is Pinterest (PINS) a Smart Long-term Buy Now?

Choice Equities Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 35% (net) for the quarter, outperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Choice Equities Capital Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Choice Equities Capital Management highlighted a few stocks and Pinterest Inc. (NYSE:PINS) is one of them. Pinterest Inc. (NYSE:PINS) is a social networking service. Year-to-date, Pinterest Inc. (NYSE:PINS) stock gained 274.4% and on December 14th it had a closing price of $69.79. Here is what Choice Equities Capital Management said:

“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.”

Yesterday, we published an article revealing that Baron Opportunity Fund is bullish on Pinterest Inc. (NYSE:PINS) stock. Pinterest is likely to be the next Twitter Inc. (NYSE:TWTR) due to increased user engagement.

In Q3 2020, the number of bullish hedge fund positions on Pinterest Inc. (NYSE:PINS) stock increased by about 51% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Pinterest’s growth potential. Our calculations showed that Pinterest Inc. (NYSE:PINS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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