jeudi 28 octobre 2021

Pinterest (PINS)

I never cared about Pinterest. 

Some girls like that website because it gives them ideas to spend their husband's revenue for some home improvement. 

I've spent maybe 20 minutes of my life on that website before and never thought that I had to go back there. 

But I've been a Paypal shareholder since march 2020 and recently, I heard some rumours about Paypal buying Pinterest. On that news, Paypal went down a lot and I understand why because, frankly, what's the justification of that acquisition? How come a payment business would buy a decorative ideas business?

However, I recently took a look at Pinterest and I was surprised by how good things were going with that business. The company wasn't profitable until very recently, but even when it wasn't profitable, revenues were growing a lot, year after year. 

2017 revenues: 473M$

2018 revenus: 756M$

2019 revenues: 1.1B$

2020 revenues: 1.7B$

2021 estimates: 2,6B$

2022 estimates: 3,4B$

EPS 2021 (estimates): 1,06$

EPS 2022 (estimates): 1,39$

FWD PE: 33

I even bought some shares. Not a big position, but enough to keep an eye on it and see how things turn. I think that some other companies might be interested by Pinterest if Paypal doesn't buy it. And even if there's no buyer, Pinterest offers very solid growth.

Actually, the only thing that bothers me a big with that company is the high dilution. But revenues grow a lot. So, if results are impressive, dilution bothers me much less. 

1 commentaire:

  1. I owned this but I sold it on the pop to $60. I don't think the upcoming earnings report is going to be good but it's also been beaten down already. The market doesn't like that it missed MAU 2 Qs in a row. Microsoft apparently offered $100 a share earlier in the year.