top of page
  • Writer's pictureAbacus Research

Pinterest: Early in its pivot towards monetisation, clear upside to ARPU

Pinterest is a productivity tool for planning ideas and getting inspiration. Its main users are millennial mothers although the pandemic allowed PINS to broaden its user base and verticals. Pinterest has so far focussed on customer experience rather than revenue. This is the opportunity: it is far behind other platforms in terms of monetisation.

  • PINS trades on sensible EBITDA and EPS multiples on 2023 estimates, which we think are conservative.

  • Although there was some bringing forward of customer growth because of pandemic, we believe PINS short-term cliff fears (growth slowdown) may be exaggerated and it is likely to do better than other ecommerce players.

  • Social media is fragmenting and dollars are flowing to alternative destinations, not just FB and GOOG.

  • We believe a material change happened in 2020, partly internal change, partly market changes due to COVID, the result is increasing monetisation, with high incremental margins and limited reinvestment needs.

Potential Upside: $101 (+52%)

Sensible Downside: $50 (-25%)

Recent Posts

See All

Fortive: potential14% IRR

Fortive is a high quality business with an asset light model, high margins, high incremental margins and consistent FCF generation that is reinvested in M&A. Recent guidance for slow organic growth fo

Vertiv (VRT) - Datacentre play on AI theme

Vertiv is a leader in critical infrastructure for datacentres and a clear beneficiary of AI driven growth. AI tailwind for datacentres is only starting. To date, Vertiv has seen little to no impact fr

Palantir (PLTR)

The advent of LLM’s have changed Palantir's relationships with institutions – the commercial market is now open to what Palantir is selling. This is a significant change from one year ago. AIP bootcam


bottom of page