A Social Media Stock Worth a Look

[View in browser]( TOGETHER WITH: Proprietary Data Insights Financial Pros Top Social Media Stock Searches Last Month Rank Name Searches #1 Twitter Inc 1762 #2 Facebook Inc 828 #3 Alphabet Cl C 276 #4 Pinterest Inc 92 #5 Snap Inc 76 Sponsored [Top market analyst: “Gold breakout imminent”]( Some of the richest men in the world are jumping in right now. One expert says: “We are in the early stages of a mania – the calm before the storm.” [Know more]( Social Media A Social Media Stock Worth a Look Ever since Elon Musk made an offer to buy Twitter (TWTR), investors have wondered if any of the other battered social media stocks could be worthy of acquisition. While we don’t think Elon will make a play for another social media company if his bid for TWTR fails… …we’ve uncovered one stock, which we believe has a better business model, and is priced fairly enough to be considered a stock in your portfolio. Pinterest (PINS) was the subject of an acquisition by PayPal (PYPL) last year. Ultimately, the deal fell through. Since then, interest has waned relative to other social media stocks. In fact, Pinterest barely makes it into the top 5 social media searches by financial pros. But, that may be for the best. You see, the company boasts an insane gross profit margin. And its P/E ratio isn’t out of control. That’s why we believe this stock deserves your attention. Learn technical tools and analysis used by experts, provided by experts (Sponsored) Technical analysis is one of two core analytical frameworks used by traders to predict the performance of commodities futures. By charting and evaluating peaks, bottoms, trends and various formations, traders can discern patterns and make buy and sell decisions based on this information. By reviewing our curated archive of technical analysis content, you can help ensure that you have the analytical tools necessary to trade with confidence. Whether you’re new to trading or just need a refresher course, this guide provides the ground-floor basics of technical analysis tools and techniques. With easy-to-understand explanations and clearly marked illustrations using real market charts, you’ll want to refer to this guide again and again. Get Your Free Technical Guide Today! [Click here!]( Pinterest Inc (PINS) Business PINS is a social media app that allows people to find inspiration for their lives. For example, many users hop onto the app to find recipes, style and home inspiration, DIY, and others by playing “Pins” on their board. People have saved more than 300 billion Pins across a range of interests. The app has more than 400 million monthly active users. The firm continues to see engagement among its users, as shown by its average revenue per user metrics, which have shown an impressive rise over the last two years. Like other social media companies, the firm generates the majority of its revenues from advertisers. Financials PINS saw significant growth over the last three years, reaching $2.5B in revenue in 2021, a big jump from 2019’s $1.1B in revenue. Despite its surge in business, PINS has managed to improve its gross margin percentage, which sits at an incredible 79.5%. PINS has a price to cash flow of 19.2x, which is rich when you consider the sector median is 9.5x. Furthermore, PINS has free cash flow of $744m. In other words, it has $744M of cash left over after it pays for its operating expenses and capital expenditures or $0.94 per share. The company’s current ratio of 12.25x means its assets are 12.25 times greater than its short-term liabilities, giving it access to deep pools of liquidity. This is emphasized by PINS’ quick ratio of 12.06x. That means its highly liquid assets are 12 times greater than its short-term liabilities. The firm has a reasonable debt-to-equity ratio of 0.07x. And unlike some social media companies, PINS generates an EPS profit. Valuation PINS is not a cheap stock by any stretch of the imagination. It trades at a price to sales ratio of 5.42x, which is significantly higher than the sector median of 1.66x. Furthermore, its price to cash flow ratio is 19.2x, which is higher than the sector median of 9.5x. The P/E (Non-GAAP) ratio for PLTR is 19.32x which is not bad when you consider the sector median is 15.54x. One thing which can’t be denied is the firm’s growth, which grew 52% year over year. Its working capital growth improved by 35.7% year over year, which is a lot better than the sector median of 5.6% PINS had a gross profit margin of 79.4% in 2021, which is outstanding compared to the sector median of 50.8% And its net income margin is 12.2%, which is again, above the sector median of 5% Our Opinion - 8/10 PINS has seen its shares get decimated over the last six months. And while valuations may appear to be high, the firm has done an excellent job at growing its business. At its current valuation, we believe it's worth the risk. And believe over the 12-24 months, shares will be trading significantly higher. [We want to hear from you! Let us know your thoughts by clicking here]( # [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list](. Update your email preferences or unsubscribe [here](. View our privacy policy [here](#). Copyright ©2022 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc. newsletter is for information purposes only and opinion-based. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or against losses. No representation or implication is being made that using any of these methodologies or systems will generate returns or ensure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](