It sounds like Pinterest (NYSE:PINS) meets YouTube. The social media company’s latest venture has the potential to provide investors with some hope that PINS stock will regain its mojo in 2022.
In a blog post on Oct. 29, Pinterest announced it would be launching Pinterest TV, which it described as an offering of “live, original and shoppable creator shows.”
“Pinterest is a destination for people to watch, shop and try inspiring ideas in categories like food, beauty, home, and DIY,” the company said in the announcement. “Through recent advancements with shopping and creator features, Pinners are engaging in more immersive formats and actionable entertainment than ever before.”
Programming begins today, with episodes refreshed each weekday. Shows will be on at 6 p.m. Eastern and available on both iOS and Android devices. The shows will also be available on-demand.
On Fridays, products will launch on Pinterest TV in a live shopping setting, with discounts available on brands that include Outdoor Voices and All Birds.
A Closer Look at Pinterest TV
All in all, Pinterest TV is an interesting concept. Pinterest is popular with its users because it allows people to trade ideas about things that interest them, including food, clothing and home decor.
As the coronavirus pandemic forced people to stay indoors more, Pinterest’s monthly active users and PINS stock rose to all-time highs, with shares topping out just below the $90 mark earlier this year. But the stock fell in the spring and summer as it began to look like the growth in users was not sustainable.
Can Pinterest TV change that? That’s what the company is betting on. By tagging products, content creators can allow Pinterest users to buy directly. Initial programs will include:
- Christian On, featuring fashion designer Christian Siriano of Project Runway
- Unfail My, a cooking show about failed holiday dishes hosted by director and screenwriter Monica Suriyage
- Tom Tries, hosted by Olympic gold medal diver Tom Daley, who tries to learn new skills from seniors
- Manny Does, a holiday beauty show featuring Manny MUA
- Buy This, hosted by comedian Robyn Schall and featuring projects from popular brands
Finally, the company is creating a virtual studio in which Pinterest producers can work with content creators to develop unique content and offer support.
How Pinterest’s Q3 Earnings Stacked Up
Pinterest reported third-quarter earnings on Nov. 4 that beat on the top and bottom lines. The company posted revenue of $633 million against analysts’ expectations of $630.9 million. Adjusted earnings per share came in at 28 cents versus an expected 23 cents per share.
On the downside, the number of monthly active users was 444 million, which was less than the 460 million analysts expected. Even more troubling, MAUs were down 2% from July. However, the company said it brought in $1.41 per monthly active user, or 3 cents better than expected.
“We were pleased with the financial results that we delivered in Q3,” CEO Ben Silbermann said. “Revenue grew 43% year-over-year and I am proud of the team’s progress in launching a number of new products for both creators and brands, bringing more video content and shoppable features to Pinterest.”
Looking forward, the company says it expects year-over-year growth in the fourth quarter to be in the high teens, while Refinitiv analysts were looking for revenue growth of 23.9%.
The Bottom Line on PINS Stock
The takeaway from the latest earnings report is that Pinterest, while seeing a decline in MAUs, successfully generated more money from each user. Wall Street showed some initial approval, as PINS stock rose nearly 6% following the announcement.
I’m more interested in Pinterest TV, though. People prefer to consume information through video over text, which is one thing that’s made YouTube so popular. If Pinterest can allow more brands to engage with users and sell products, PINS stock becomes a more interesting play.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.
