As the onset of the Covid-19 pandemic rocked the markets last year, investors in Pinterest (NYSE:PINS) took a loss — but not for long. Indeed, PINS stock rebounded sharply and rewarded patient shareholders handsomely.
This can be attributed, to a certain extent, to the lockdowns. As people stayed indoors, many of them spent more time on social media to pass the time.
Today, those lockdowns are being lifted, and people are venturing outside again. That’s good news, no doubt, but should PINS stock investors be worried?
Not at all. If anything, the stock could be setting up for a breakout to new highs as Pinterest evolves its platform to meet the demands of today’s consumers.
PINS Stock at a Glance
In hindsight, it’s easy to see that PINS stock was a terrific bargain when it bottomed out near $12 in March of 2020.
But then, hindsight is always 20/20. Today, we have to deal with the prices that we’re given — and Pinterest shares are certainly more expensive than $12.
As of market open on July 6, 2021, PINS stock was priced at $79 and change. Yet, history shows that there’s room for the stock to move higher.
That’s because there’s a target price established at $85. The bulls made a run for that level once in February and then again in April.
Resistance levels shouldn’t be viewed as concrete, impenetrable ceilings. Rather, they’re new barriers to be broken sooner or later — especially if you believe in the company.
So, are there reasons to believe in Pinterest as lockdowns are being lifted? In actuality, there’s data to suggest that the platform is as robust as ever.
If the skeptics need proof that Pinterest is flourishing in 2021, the company’s first-quarter data ought to do the trick.
For the quarter that ended on March 31, 2021, Pinterest’s global monthly active users (MAU) grew by 30% on a year-over-year basis, to a whopping 478 million.
So, no worries — plenty of folks still use Pinterest nowadays.
But does this translate into solid revenue growth? The answer is definitely yes.
During 2021’s first quarter, Pinterest increased its revenues to $485 million. That represents a 78% year-over-year improvement.
Pinterest co-founder and CEO Ben Silbermann explained how his platform continues to provide essential services, even in a world that’s recovering from the Covid-19 pandemic.
“Whether it’s recipe ideas during the pandemic or dream vacation planning for the future, I’m proud that we now help 478 million people every month find inspiration to create a life they love,” Silbermann stated.
Bigger and Better
Even with such strong revenue and user growth, Pinterest must continue to evolve its platform.
The company is achieving this by adding to its list of shopping features. This is a savvy move as it shows that Pinterest is still responsive to the consumers’ needs and demands.
Pinterest’s new feature is called Shopping Lists. This feature will allow visitors to save “product Pins” in one place, so that they can come back when they’re ready to make a purchase.
Not only that, but also would-be shoppers will receive a notification whenever a saved product drops in price.
Moreover, Pinterest is taking its shopping features global. Just recently, the company announced the expansion of its platform’s shopping features to Australia, Canada, France and Germany.
As for the Shopping List, there’s a specific order in which this feature will roll out: first in the U.S. and U.K., and then to the four previously mentioned countries later this year.
There’s no denying the data, which shows that people are still using Pinterest in a post-lockdown world.
Just as importantly, Pinterest is evolving as a platform. That’s important for PINS stock holders to know, as a breakout moment could happen in the near future.
PINS stock currently has an “A” rating in my Portfolio Grader.
On the date of publication, Louis Navellier had a long position in PINS. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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