I had long thought that this social media player and its stock would have sunk into obscurity. 
Pinterest is a “social media platform” that focuses on sharing images and and videos. It seems that many people use this service to get ideas and inspiration. I haven’t really used the service, but from my own glances, the service hasn’t changed significantly. The service was launched in 2010, so it’s not among the very first nor the very latest services.
I sometimes wonder if the service is dead:
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Pinterest had 465 million active users in 2023, which was 7.3% more than the previous year. The tenth largest social media in the world, so it’s certainly not a small player.
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Revenue last year was 3,055 million, which isn’t that huge if you consider different social media giants, but on the other hand, it’s not a small company if you don’t compare it to mega-companies.
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Market capitalization is 20.42 billion dollars
Based on user numbers, I would say it’s a giant, but on the other hand, when considering other figures, it’s not such a giant; well, on the Helsinki Stock Exchange, this would be a mega-giant.
A little more about this social media platform:
The company may be unfamiliar to many here, even if the name is known, so I recommend visiting the website: https://fi.pinterest.com/
Quoted from the aforementioned website:
What is Pinterest?
Pinterest is a visual tool that makes it easy to find ideas, such as recipes or inspiring interior design or style tips.
Pinterest is a true treasure trove, with billions of Pins on the service. When you see interesting Pins, save them to your own boards to keep them organized and easy to find. You can also create Pins and share your ideas with other Pinterest users.
An investor’s perspective
Pinterest is an apparently good option for companies because a company can present the image it wants of itself and its products, and there’s less need to fear negative comments or hate speech. In addition, users of this service have more purchasing power than active users of many other services; Pinterest users are a bit older.
At the beginning of 2016, there were 128 million users, at the beginning of 2020, there were 367 million users, and last year it was 465 million. So, it’s not a decaying platform.
On the other hand, according to some investors, the revenue level has not been commendable, and the company’s outlook and costs have also risen. Based on what I’ve read, I haven’t seen any major factors that would allow me to foresee significant growth in the company’s figures. AI has also been mentioned, as is customary, but in my opinion, not credibly, but rather because it has to be mentioned.
On Valuations (August 2nd):
P/E ratio 100
P/B ratio 6.22
P/S ratio 5.90
EV/EBITDA 128
In my opinion, the latest reflections after the recent quarter already tell a lot:
https://x.com/gurufocus/status/1818395096359796849
And here’s a little more from Pinterest’s own pages:
And here are Olli Koponen’s thoughts on Pinterest’s Q2, taken from the Weekly Earnings Summary, and the video should start playing from the correct spot:
