Pinterest Is Down 78% -- Is It Time to Buy?
Pinterest (NYSE: PINS) has seen its stock fall by nearly 80% since hitting its peak in Feb. 2021. The stock surged to elevated levels amid COVID lockdowns and fiscal stimulus. But as users returned to their offline activities and inflation worsened, consumers -- and investors -- turned away from Pinterest. On top of that, investors have most recently had to contend with the resignation of co-founder and CEO Ben Silbermann.
However, monthly active user levels have begun to rise again, and given the much lower valuation for the social media stock, investors may want to take another look at this company.
Pinterest may arguably be the site most geared to individual tastes. Instead of typical user profiles, users "pin" items based on their likes or passions. This information allows the company to generate revenue through "promoted pins" -- ads targeted specifically to users interested in a related product or service. Hence, instead of relying on demographics or psychographics, Pinterest focuses purely on individual tastes.
Source Fool.com
