Now, social media companies are focusing on advertising efforts to sustain revenue growth, with large retailers and small-business owners taking to these platforms to attract online shoppers. Like its peers, Pinterest had seen a surge of interest when the pandemic first struck after users took to the digital pinboard to plan DIY projects or “pin” interesting ideas to keep themselves entertained during lockdowns. That missed analysts’ estimate of 447.95 million, according to FactSet. The image sharing platform’s monthly active users (MAUs) – a key metric that shows engagement levels on the website – was 431 million for the quarter, the company said on Thursday. Pinterest monthly active users declined six per cent during the fourth quarter to the lowest since June 2020, signalling that a pandemic-driven surge in demand was cooling off as easing restrictions encourage people to step out more. (Photo by Rich Polk/Getty Images for Pinterest) The post Despite a Drop in Monthly Active Users, Pinterest Has Plenty of Value appeared first on InvestorPlace.NEWPORT BEACH, CA – JANUARY 18: Browsing Pinterest app to discover fresh inspiration like food recipes, home decor ideas and fashion trends. Man Who Called Black Monday: “Prepare Now.” Stock Prodigy Who Found NIO at $2… Says Buy THIS Now Her knowledge of words and numbers helps her write clear stock analysis. She believes in buying and holding for long term gains. Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. However, the execution of marketing strategies is important, and it will be interesting to see how the company works to attract and retain users in the coming months. PINS stock could generate returns for investors at the end of the first quarter of 2022, when the stock could pick up the pace. The stock is trading below $30, which makes it a solid buy. BofA analyst Justin Post has a price target of $46 with a “neutral” rating on the stock. The analyst stated that the results were “better than feared.” Further, UBS analyst Lloyd Walmsley has a price target of $35 with a “neutral” rating after the shares beat the fourth-quarter earnings beat. Brad Erickson, RBC Capital analyst, has a price target of $34 with a “sector perform” rating. Several analysts are bullish on PINS stock. What many investors are failing to see is the rise in the average revenue per user and solid revenue growth despite the pandemic, supply chain issues and overall sentiment of the investors. The company did make the most of the pandemic but look at the big picture. Investors must understand that Pinterest has value beyond the pandemic when deciding to invest in the company. The company has strong projections for this quarter, and I believe it has solid plans to achieve them. But one should not judge the fundamentals of the company solely on the user numbers. Since the third quarter, the company has seen a dip in user growth, and this has impacted PINS stock adversely. It is important to note that the company managed to report solid revenue numbers despite the decline in user base. The company’s growth story is highly overlooked and its potential underestimated. As long as Pinterest manages to enjoy a high revenue per user, there is no stopping its growth momentum. average revenue per user hit $7.43, which is a 25% increase. Global monthly active users declined 6% and reached 431 million, but global average revenue per user increased 23% to $1.93, and the U.S. On top of that, the company managed to reach the first full year of profitability under GAAP, which is noteworthy.ħ Industrial Stocks to Buy As Tech Stocks Tumble Revenue rose 20% from the same quarter last year. Pinterest reported revenue of $847 million with adjusted earnings of 49 cents a share. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Strong Fundamentals
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