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Pinterest Inc Class A PINS

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Pinterest Beat Q3 Expectations but Uncertainty Surrounding User Growth Remains; Shares Attractive

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

While Pinterest’s third-quarter top and bottom lines beat the FactSet consensus estimates, the decline in U.S. users is concerning in our view. However, we were pleased with the firm’s ability to increase user monetization by attracting more advertisers. We expect higher user growth in 2022 and beyond as the impact of the pandemic, which pulled user growth forward, will be lapped. We also expect the firm’s latest offerings that attract content creators and improve users’ shopping and purchasing experiences on the platform to drive user growth. In addition, we think some advertisers will come back after macro issues related to supply chain and labor shortage are resolved. Plus, as expected, Apple’s policies appear to have hit Pinterest less than some of its peers.

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Company Profile

Business Description

Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its more than 365 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.

Contact
505 Brannan Street
San Francisco, CA, 94107
T +1 415 762-7100
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 3,112

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