In 2021, Pinterest stock tripled, but almost no one paid attention to it against the backdrop of Tesla and Zoom Video Communications' success. We think the stock could be interesting to buy, despite its nearly 60% slump from February to December of this year. Rumors that PayPal might buy Pinterest for $70 a share momentarily fueled interest in the latter's stock. Given Pinterest's projected 2021 net income growth of more than 2x, the company's 32.8x P/E 2021E valuation looks unjustifiably understated.
Pinterest is often compared to Facebook and Instagram's social networks, but the company has one big difference, and it's an advantage. Its convenient business model encourages retailers to use Pinterest as an e-commerce platform. This opens up a vast opportunity for Pinterest to grow.
Pinterest is actively developing its own ecosystem by creating new features and user-friendly "chips" for users in the app. It can be stated that Pinterest operates on a unique business model in terms of online advertising and therefore has advantages over other advertising platforms. One possible avenue of development as an e-commerce platform provides Pinterest a considerable opportunity for growth.
Pinterest recently released several new features on its platform. Thus, users can post personal messages with ideas and leave comments under "pins," sharing impressions and encouraging others to try the same ideas. The company launched Pinterest TV, a live streaming feature within the app. There is also an innovation of Idea Pins - a format of multi-page short videos with tags created by users' requests and is currently the fastest-growing type of content on the platform.