‘The Next Facebook’: 5 Undvervalued Internet Stocks with Huge Upside

3. Pinterest, Inc. (NYSE: PINS)

Number of Hedge Fund Holders: 83 

Pinterest, Inc. (NYSE: PINS) is a California-based company that owns and operates a visual discovery engine. It is ranked third on our list of 10 undervalued internet stocks with huge upside. According to Dilantha De Silva, a finance expert specializing in US-based equities, has noted that the drawdown in the stock after slowed user growth was an overreaction, underlining that the pandemic frenzy in tech was nearing an end and this was just a normalization. The bullish thesis also underlined the opportunity for growth that international markets offered to the firm. Presently, about 22% of the revenue of the company comes from international business, with the bull case underlining this could grow substantially in the coming years. 

On July 30, investment advisory Morgan Stanley maintained an Overweight rating on Pinterest, Inc. (NYSE: PINS) stock but lowered the price target to $77 from $83, noting that user uncertainty would weigh on the minds of investors despite shopping trends in the right direction. 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Alkeon Capital Management is a leading shareholder in Pinterest, Inc. (NYSE: PINS) with 6.8 million shares worth more than $506 million. 

In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Pinterest, Inc. (NYSE: PINS) was one of them. Here is what the fund said:

“Pinterest is an operator of a pinboard-style social media website that enables users to create theme-based image collections for events, hobbies, and other personal interests. The firm delivered another quarter of both earnings and forward guidance above investor expectations, sending shares higher. Strength was driven by notable user growth and a return of advertising spending. We remain excited about an increase in video content, new analytics tools for advertisers, and an increasing shift towards ecommerce.”