Social media giant Pinterest (NYSE:PINS) announced a ground-breaking partnership with eCommerce platform WooCommerce. The partnership will connect over three million WooCommerce sellers with the colossal Pinterest userbase.
The tech firm’s partnership with WooCommerce will enable merchants to create shoppable pins. The pins automatically update pricing, availability, product descriptions, and other related elements. Shoppable pins will show up on user feeds using Pinterest’s discovery engine. Moreover, sellers can track best-sellers, saved items, and other aspects. Hence, merchants will find it easier to drive sales and build audiences by taking advantage of over 400 million monthly users on Pinterest.
97% of top searches on the Pinterest platform are currently unbranded. This suggests that the majority of users of potential shoppers on the platform are still making up their minds. They are likely to spend over 40% more than people on other platforms when they are ready to decide.
Additionally, the partnership will enable merchants to advertise effectively. Sellers can leverage ad formats and automated campaigns and go for dynamic retargeting with pertinent data at their disposal.
Pinterest has attracted its fair share of bulls and bears over the years. The market is fidgety at this time due to multiple short-term headwinds impacting the company’s business. These risks include high inflation, tough comps, and user volatility. Though these short-term concerns are valid, they are unlikely to hamper the company’s long-term bull case.
Nevertheless, the recent market turbulence has led to more than a 50% drop in PINS stock value. Hence, it now trades at roughly 5.60 times sales, compared to its 5-year average of over 13.70. Therefore, PINS stock now presents itself as a significantly more attractive long-term bet.
On the date of publication, Muslim Farooque 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