Pinterest Share Forecast November 2021 – Time to Buy PINS?
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Shares of Pinterest (NYSE:PINS) are in the green today after closing on $46.56 as of November 8th (19:59 EST). The company took investors on a wide ride in Late October after rumours regarding Paypal’s $45 billion acquisition of the company started circulating. While the shares initially skyrocketed on the news, they declined once again when it was revealed that PayPal wasn’t interested in the acquisition. The company has largely appealed to women, especially with its early user base, with over 60% of its user base being women as of 2020.
Pinterest – Technical Analysis
According to the financial statement released by Pinterest, the market cap of the company is at $30.013 billion with total assets worth $2.886 billion. Revenue for 2020 was at $1.69 billion with a profit margin of -7.58% compared to $1.14 billion in 2019.
Moving averages such as Simple Moving Average (20)(50.22), Exponential Moving Average (30)(50.04), Simple Moving Average (30)(50.49), Exponential Moving Average (50)(52.35) and Simple Moving Average (50)(52.21) are pointing towards a sell action. On the other hand oscillators such as Relative Strength Index (14)(42.18), Stochastic %K (14, 3, 3)(9.28), Commodity Channel Index (20)( −50.83) and Average Directional Index (14)(24.66) are neutral.
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Recent Developments
Pinterest has always aimed at helping its users find inspiration and share content and directing users to the brands and stores where they can make their ideas a reality. Advertisers are starting to let their feelings know about how much they want a piece of Pinterest’s large user base, who often come to the platform already looking for shopping ideas. Management credited the revenue increase of 43% year over year in the third quarter to increasing demand from large retail advertisers.
International revenue for Pinterest was up 96% compared to just 33% from domestic markets. Pinterest is currently in the fledgling stages of its sales coverage expansion, while also concentrating on focusing on growth for international monetization by concentrating on advertiser base and shopping-worthy content. The narrowing of the monetization gap between Pinterest’s international and United States users will be the main driver behind significant long-term growth, with many expecting the shares to deliver a 10-times return for investors.
Should You Buy PINS Shares?
Due to unpredictable comparisons to its pandemic-induced growth a year earlier, the company did not provide any exact guidance for Q4. As the growth of more evergreen interests like beauty and women’s fashion coincides with a decline in stay-at-home interests (such as home décor and recipes), the usage of Pinterest’s pinboards are still evolving and expanding. Analysts expect the company’s revenue to rise 55% for the full year and 31% the next.
Investors shouldn’t overlook Pinterest’s valuation as it matters when thinking about the long-term return potential of a company. Its price-to-sales ratio has declined to13 from 30 at the start of 2021. This provides investors with a gateway to earning greater returns than those who bought at the higher levels from earlier this year.
However, it should be said that the shares are no bargain. Investors looking to buy PINS shares should have confidence in the company’s ability to become a more shopping-worthy platform. Since users turn to Pinterest to discover and act on their ideas unlike other social media sites, it could be ideal for advertisers. With the introduction of short-form video content with Idea Pins, management believes that the company will appeal to advertisers more driving average revenue per user higher. Considering these factors, you can easily grab PINS shares and add them to your portfolio.
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