Pinterest's International Growth Offers Investors A Big Opportunity, The Street Sheet Says

Zinger Key Points
  • The Street Sheet identifies bullish drivers for Pinterest amid strong potential to grow internationally.
  • Shares are 68% lower since 2021's all-time high, and the company presently trades at 41 times its projected earnings.

Pinterest Inc PINS has recently been highlighted in The Street Sheet, a weekly newsletter covering the world of business and finance, which praised it as an appealing social media platform for marketers, with considerable potential for growth.

Pinterest has struggled over the past few years as the end of the COVID-19 epidemic decreased social media usage rates and rising interest rates have dampened growth stocks.

The company's stock is currently trading at $28, which is a shocking 68% lower than its February 2021 record high of $89, The Street Sheet recognized. 

Pinterest's stock is presently trading at 41 times its predicted profits, according to Benzinga Pro data. Pinterest will report its first quarter 2023 financial result on Thursday, April 27, after market close. 

Pinterest (PINS) 1-day price chart and % change from all-time high: TradingView

Read Also: Check Out What Whales Are Doing With PINS

The Bullish Catalysts for Pinterest, According to The Street Sheet: 

  • Last summer, Pinterest named Bill Ready, a former executive at Alphabet Inc. GOOGLGOOG, as its new CEO.
  • The company is boosting its business outside the U.S., which may result in more revenue gains.
  • Pinterest becoming a potential takeover target.
  • Activist investment group Elliot Management purchased a stake in the social networking platform.
  • 450 million monthly active users.
  • International expansion potential: International users account for 80% of all users, but just 20% of revenues.
  • The average revenue per user is $25 in the U.S. and Canada, while it's only $1.5 internationally.
  • Wells Fargo analyst Brian Fitzgerald predicts Pinterest's sales might exceed $6 billion by 2027, allowing it to become profitable.

Read Next: Trading Strategies For Netflix Stock Before And After Q1 Earnings

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: Long IdeasSocial MediaTechMediaTrading IdeasGeneralBill ReadyExpert IdeasGrowth stockspinterest
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!