Analysts tracking PINS stock have a 12-month average price target of $41.86, which is 56% higher than its current trading price. Pinterest’s attractive valuation and massive upside potential coupled with its increasing ARPU make it a top bet right now. International users account for 80% of Pinterest’s total user base, and the company will have to expand its ARPU metrics consistently to drive revenues higher. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
Uber, Lyft’s key competitor in the ride-sharing economy, has had a busy decade since it was formed in 2009 as UberCab. The brainchild of entrepreneurs Travis Kalanick and Garrett Camp, the ride-sharing app operates globally and has expanded into other businesses including food delivery, trucking, and scooter rental. PINS stock is reasonably valued at current prices given its price to earnings multiple.
A look at Facebook’s geographic segments shows the future path to growth for this company pretty clearly. Facebook reports more than 250 million users in the U.S. and Canada — but census figures show only about 210 million U.S. residents age 18 and over. Even if some of those accounts are duplicates, fakes or just noise, the general reality of this dynamic means there aren’t that many people left to sign up. In fact, we will soon mark the 10th anniversary of Facebook’s IPO on May 18, 2012, at a mere $38 per share. The stock price of this social media icon has increased almost 10-fold since then, as it has become a massive force of technology and media that boasts a staggering 2.85 billion monthly users worldwide. That reach comes with powerful profit potential, but also increased scrutiny by users and politicians amid fears of misinformation and privacy concerns.
Keep in mind that no two companies are alike — even rivals don’t compete in every space. Any investor needs to do their own research to make informed long-term decisions. Trong Nguyen / Shutterstock.comAs we previously reported, the Austin housing market has gone bonkers. Now, the company has faced multiple lawsuits and several cities have sharply restricted or moved to ban the service. In 2017, co-founder Kalanick stepped down amid controversy and was replaced by former Expedia CEO Dara Khosrowshahi. Its stated mission is “to improve people’s lives with the world’s best transportation.”
P stands for Pinterest, the web-based photo bulletin board that is also a social network. A stands for Airbnb, the popular short-term rental and experience platform that has revolutionized the travel and lodging industry. And it’s not just this coming advertising implosion that stinks bubble. “We’re the best thing happening in America,” a tech entrepreneur told the Los Angeles Times’s Jessica Guynn, who describes all the crazy spending happening in the Bay Area.
Should You Buy Facebook Stock? Its Cheap Compared With Tech Peers
For the fourth quarter, Snap reported a wider loss due to higher costs and expenses despite a 44% growth in the top line. The company’s daily active users grew 17% year-over-year to 218 million during the quarter. The content and augmented reality platforms continue to remain in the main focus backed by a significant portion of Snap’s investments and efforts. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
However, it’s important to note that even by these traditional measures, Facebook isn’t overvalued even when you use the calculations of yesteryear, even though it is a relatively new tech-focused stock. Bubbles, as we learned from The New York Times, happen when “mania causes the price of an asset to soar far above its intrinsic worth,” as the Times’s James B Worth put it. One billion dollars sounded like an overvaluation https://xcritical.com/ for a smartphone photo app that makes absolutely no money, when Facebook purchased Instagram. One and a half billion sounds similarly absurd, considering Pinterest, too has not proven it can make money. And as Facebook’s IPO shows, even the king the new Internet hasn’t proven itself. That move, while not a blow to Facebook’s $3.7 billion dollars yearly revenue, has the rest of Madison Avenue worried.
” might be more famous, but this is where the true value is being created.” True value is an overstatement. (See above.) And, these guys are spending their Facebook IPO money even before it’s cashed out. “Others are spending in advance of their big payday, fueling an economy that’s already humming thanks to the Bay Area’s thriving technology sector,” continues Guynn.
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The company went public back in April 2019 and priced its shares at $19. PINS stock touched an all-time high of $86 last February before falling by almost 70% to currently trade at $26.80. If you’ve been following along, you won’t be particularly surprised to see the enthusiasm for Facebook on Wall Street. Gross margin only figures in direct costs of doing business, while operating margin include things like salaries and R&D. PINS, -5.79%have negative operating margins as they focus on rapid growth, it’s also important to note they also lag significantly on gross margins that don’t include these big investments and spending lines.
That fact may have helped attract buyers from locked-down places such as New York, California and Oregon and encouraged them to grab their flip-flops and head south, driving inventory lower and prices higher. A collaborative economy is a marketplace where consumers rely on each other instead of large companies to meet their wants and needs. AB2257 modified them and Prop 22 exempted app-based drivers and companies. A unicorn in business refers to a startup company with a value of over $1 billion. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
Lyft Vs Uber: What’s The Difference?
You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Since its IPO, and as of April 9, 2021, shares have fallen nearly 23%. In terms of market cap, Lyft is the smallest of the four with a market value of $20 billion. CMC Markets does not endorse or offer opinion on the trading strategies used by the author.
“Now that G.M. has done so in such a large and public way, many of the fence-sitters will know that they’re not alone,” she continued. Analysts expect revenue to rise by 22% to $3.14 billion in 2022 and by 27.7% to $4 billion in 2023. Its adjusted earnings are forecast to expand from $1.13 in 2021 to $1.4 in 2023. We can see that PINS stock is trading at a forward price to 2022 sales multiple of 5.60x and a price to earnings multiple of 24.4x, which is quite reasonable. The majority of the analysts recommended a “hold” rating with an average price target of $20.
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Lyft has the smallest market cap of the four at $20 billion, while Airbnb has the largest at $110 billion. She holds a Bachelor of Science in Finance degree from Bridgewater State University and has worked on print content for business owners, national brands, and major publications. “Pinterest is a little bit different from Facebook,” continued Mikitani. Unlike Facebook, Pinterest can’t even pretend to create value, in the dollars and cents sense. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research.
- In fact, we will soon mark the 10th anniversary of Facebook’s IPO on May 18, 2012, at a mere $38 per share.
- Related to this, it’s worth noting that the vast majority of revenue at Facebook comes from ads it serves on its platform.
- 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
- CMC Markets does not endorse or offer opinion on the trading strategies used by the author.
- Before this round of funding, Pinterest was just hoping its popularity would turn into profits.
The stock, which opened at $13.82 on Wednesday, is below the 50-day moving average of $17.40 and the 200-day moving average of $15.84. The majority of the shares were owned by institutions of 46.14%, while the insiders owned 28.04% of the shares. These updates will also include comparisons of results to competitors.
While the average revenue per user for Pinterest rose by 23% to $1.94 in Q4, investors should note that the international user generates just $0.38 for the company compared to a user based in the U.S. that brings in $5.55. Pinterest’s MAUs declined by 6% year over year to 431 million in Q4 of 2021. The company’s user base peaked at 478 million in Q1 of 2021 and has since fallen steadily in the following nine months. One key reason is the emergence of other social media platforms such as TikTok, the unwinding of the pandemic, and lower search traffic. There are some who think the old-school valuation metrics of the past aren’t relevant for a new generation of social media or tech stocks.
The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. Pinterest reported sales of $847 million and adjusted earnings of $0.49 per share in Q4 of 2021. Comparatively, Wall Street forecast sales of $827 million and earnings of $0.45 per share in the quarter.
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Going forward, Pinterest might also add AR or augmented reality components to expand its monthly active users and drive top-line growth higher. Pinterest is a visual discovery engine, and the social-media company is valued ata market capof $17.63 billion. It has increased sales from $755.9 million in 2018 to $2.57 billion in 2021, indicating an annual growth rate of 50%.
As of December 31, 2019, the company had an accumulated deficit of $6.9 billion and for the year ended December 31, 2019, it experienced a net loss of $1 billion. The company expects operating expenses to increase in the future as it expands its operations. The company is not expected to achieve and maintain profitability if revenue does not grow at a greater rate than its expenses.
Intraday data delayed at least 15 minutes or per exchange requirements. Victoria Van Pelt / Shutterstock.comOne final Florida city — North Port — rounds out the list of most overvalued markets. In total, six out of the 10 cities on this list are in the Sunshine State. VideoPro2Go / Shutterstock.comIn Flagstaff, soaring housing prices are outpacing rising wages by a wide margin. So, the City Council recently voted unanimously to adopt a 10-year housing plan intended to address the problem.
Here are P/E valuations for Facebook and its peers, based on consensus earnings estimates for the next 12 months among analysts polled by FactSet, along with total return figures through April 30. Specifically, Facebook’s price-to-earnings (P/E) ratio is 24.4, based on the consensus earnings why is pinterest stock down today estimate for the next 12 months among analysts polled by FactSet. The forward P/E ratio for the next year’s earnings forecast is only around 25, while the forward P/E for the S&P 500 Index SPX, -3.41%is 21.9. The forward P/E for the tech-heavy Nasdaq Composite Index COMP, -4.69%is 31.5.
Peter Titmuss / Shutterstock.comLocated in Citrus County, along the state’s west coast, Homosassa Springs is another Florida town that attracted many types of buyers during the pandemic. By the end of 2021, the number of homes for sale had plummeted 25% as buyers snatched up whatever was available. Silicon Valley is an area in Northern California that is home to a large number of innovative technology companies. These four companies were some of the biggest unicorns, which are private startup companies with estimated valuations of more than $1 billion. The popular photo-sharing online pin-up board was the vision of entrepreneurs Ben Silbermann, Paul Sciarra and Evan Sharp, who founded the company in 2010.
The Bear Case For Pinterest Stock
Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination. Analysts expect PINS stock to rise by more than 50% in the next 12-months.
Lyft, the popular ride-sharing app based in San Francisco, was originally founded in 2007 as Bounder Web, Inc. It was founded by entrepreneurs Logan Green and John Zimmer, who are CEO and President of the company. Mginley / Shutterstock.comTo the south of Punta Gorda, Cape Coral has grown at an exponential rate. By one estimate, the population has increased by nearly 700% in the past five decades. LesPalenik / Shutterstock.comNaples has never been cheap, at least by Florida standards. Florida remained open during the COVID-19 pandemic while other states shut down.
Investopedia does not include all offers available in the marketplace. After receiving a $100 million investment from Japanese e-commerce site Rakuten, the “next Facebook,” got a valuation 50 percent bigger than the already unbelievable price of Instagram. The social-media company explained it aims to improve user engagement by introducing formats such as short-form video, which should increase the consumer’s shopping intent. So, advertisers will now target customers with a higher interest, thereby improving value for all stakeholders. Facebook’s P/E ratio is in line with the norm for the broader market and well below its peer group.
All of these companies emerged as part of the app economy and were funded by venture capital and private equity money. They have become strong brands with wide adoption and consumer loyalty, but profits were elusive . Still, their scale and popularity have enticed public markets and investors, with all four having completed their IPOs in the last few years.