Author Topic: PINS - Pinterest  (Read 1503 times)

Spekulatius

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Re: PINS - Pinterest
« Reply #10 on: April 15, 2019, 08:38:32 AM »
PINS seems pretty mediocre to me. Also note the last private round only raised $150M at a ~$12B valuation, so maybe that round was just done to get a high valuation mark?

Can you elaborate? The company is growing at a very fast rate for any business with $750 million in revenue, and has not really monetized a significant portion of its user base. I laid out a decent bullish argument (which I'm not 100% sure of). I'd love to hear why Pinterest is absolutely not worth $16 per share.

It may be the case that Pinterest only raised $150 million to get a high valuation. They would not be the first or last VC-backed company to do so.

The other side of that coin is that they have not needed to raise funding since they raised capital nearly 2 years ago, which is actually kind of a good thing right? I'm not arguing that Pinterest is going to join the FANGs or anything, but what could it be? A second-tier social media platform in a sub-industry with high levels of profitability at scale, and high incremental profitability with minimal additional capital required to grow?

Broeb22 - I just wanted to thank you for the discussion here. I donít think that PINS is a  straightforward value here, but at least the IPO valuation looks sensible here. I believe it is a niche business with relatively easy monetization. I can see this being attractive from both the users as well as the advertisers  POV. I signed up for IPO shares Fidelity, but not holding my breath here. I might buy some in the aftermarket, depending on prices.

FWIW, the reinstated my account the next morning  8).
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