Is Pinterest A Long Term Stock?

Pinterest says to begin its first day of trading up 25% at $23.75. The platform is said to allow users to ‘pin’ posts to digital ‘boards’ on topics of interest. Pinterest stock has a market capitalization of US$52 billion and the company’s price-to-book ratio stands at 23.7%. Recently, the stock climbed to fresh all-time highs after blowout Q4 financial results.

On February 4, 2021 Pinterest released the Q4 financial results which showed the revenue growth accelerating, with 76% year-on-year growth in the fourth quarter to $706 million. Also, the number of monthly active users jumped to 459 million vs. 449.4 million expected.

As per the reports, the investors and traders are said to be impressed with the progress Pinterest stock has made over the last year. Since going public at $19 per share, PINS has risen more than 200%. Technically the overall momentum remained bullish for the $PINS throughout this year and the stock is up 32% so far in 2021. In the long term, watch for monthly closing above $90 or below $70 area, that will give a larger confirmation of direction in the long term.

As per the last quarter results, Facebook’s monthly active users are up 14% versus 37% for Pinterest and the active user’s growth and lack of controversy are helping the Pinterest stock to continue the upside momentum.

Though the Pinterest stock has demonstrated good financial results and user’s growth, it also claims to face competition from other social media companies like Snap, Facebook and Twitter.