Author Topic: PINS - Pinterest  (Read 2608 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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Broeb22

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Re: PINS - Pinterest
« Reply #11 on: May 03, 2019, 03:05:16 PM »
Here I am trying to be some kind of value investor, hoping to buy PINS at a fair price for its growth.

The state of the IPO market worries me when many companies coming public are being priced at levels which make it almost impossible to justify.

PINS, ZM, BYND, all into the stratosphere.

Sigh....

Spekulatius

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Re: PINS - Pinterest
« Reply #12 on: May 04, 2019, 04:57:17 AM »
Here I am trying to be some kind of value investor, hoping to buy PINS at a fair price for its growth.

The state of the IPO market worries me when many companies coming public are being priced at levels which make it almost impossible to justify.

PINS, ZM, BYND, all into the stratosphere.

Sigh....

Imo, the market is story driven right now. I am keeping PINS on my watch list and I think there might be Chance to get this at a sensible valuation later on. I think that even Uber will come out of the gate strongly and my bet is that they will raise the IPO price a bit above $50. I am not interested in that one though.
« Last Edit: May 05, 2019, 06:19:27 AM by Spekulatius »
To be a realist, one has to believe in miracles.

Broeb22

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Re: PINS - Pinterest
« Reply #13 on: May 05, 2019, 06:09:47 AM »
Spek, I think you'll be right. Hopefully sooner rather than later.

These hugely successful IPOs all in close succession reek of late cycle investor/VC behavior. The VC's see the window closing IMO.