I agree that Pinterest has done well, and expect it to be a solid “buy and hold” stock for most portfolios. There are several reasons for this.
- Pinterest was reasonably valued at its IPO, in market contrast to Lyft.
- Pinterest has some great assets: 80% of all Americans moms are users, and users are passionate about the platform. The CEO is an ant-SV person with excellent values, and interested in building something for the long haul that benefits multiple stake-holders, not just himself.
- It remains reasonably valued in comparison to its’ other recent IPO’d peers.Lyft was a disaster waiting to happen. Zoom (ZM) was valued reasonably at IPO, (given its profitability), but the market took it from $36 to $65 immediately, and it may now be over-valued as well.
- Pinterest does not positioning itself as a “Facebook” beater, or even as a social media company. It is a place where you connect with people over things you are passionate about and interested in “collecting”. There is no attempt to manipulate a user into keeping “eyeballs” glued to the site. How refreshing!
Consistent with its vision and assets, Pinterest can double in value in the next 3–5 years, with execution on monetization, in my personal opinion. With the stock at $28+ today (April 25, 2019), the company has a market cap of $15B. Twitter has a market cap of $29B. There is no reason that Pinterest, with its valuable assets and thoughtful CEO cannot grow the company to a similar valuation.
Thank you for the a2a.