The social networking company Pinterest Inc (PINS) rose 226% in the past year. If the price has increased significantly, is it worthwhile to acquire these shares? The answer may be highly favorable when a long-term investment is considered.
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Pinterest recovered sales relatively quickly after the onset of COVID-19 slowed growth in the second quarter of 2020. During the third quarter, revenue increased 60%, then increased by 80% in the fourth quarter, reaching $706 million in revenue. The MAU volume has increased to over 100 million in 2020. That figure increased by 37% year on year.
In its favor, Pinterest Inc (PINS) has no issues with fake news or accusations that they influence public opinion. Users are given a chance to develop hobbies, exchange skills in handicrafts, and much more with the company’s pages of interest. As a result, Pinterest remains relevant to users regardless of economic and political conditions.
Pinterest’s growing revenues and user base have allowed it to move toward GAAP profitability gradually. Adjusted EBITDA is also increasing. During the fourth quarter of 2020, this metric displayed a profit margin of 42%, which is nearly 2.5 times greater than the 19% margin in the prior quarter.
According to Pinterest Inc (PINS), it expects its revenue to grow about 70% YoY in the first quarter of 2021, outpacing Wall Street’s outlook for just over 50%. The growth of Pinterest can thus continue for a long time since it is a young company. However, PINS shares are likely to be more appealing for long-term investors at the current high prices.
Pinterest Inc. (NYSE: PINS) ‘s share price is now approximately $79.41, meaning its value has soared 686.24% above its 52-week low. Shares of PINS have traded between $81.70 and $79.03 in intraday trading. Over the last 52 weeks, shares of the company have reached highs of $86.49 and lows of $10.10, whereas recent intraday trading sessions showed a -0.50% change.