Die PinterestStock (NASDAQ:TSP) and e-commerce: We fools have been seeing potential synergies for quite some time. However, this possible investment thesis is now becoming mainstream. Presumably also because, among other things, with Bill Ready a functionary has joined as CEO who has the necessary know-how in this area.
However, e-commerce is not exactly new. Nevertheless, it still offers a lot of potential. Analysts are now jumping on this bandwagon. Should foolish investors do the same? Let’s find out!
Pinterest Stock: The E-Commerce!
In fact, for several quarters there have been increasing signs that e-commerce is the future for Pinterest stock. Or: A logical connection with a view to the current ecosystem and the previous operational orientation.
The management, still around the old CEO, has, for example, bought and developed applications that make lists possible. Intended as shopping or wish lists that can enable the integration of online trade. Or smart technology that recognizes certain products and displays the respective purchase option. Those were the first latent signs for foolish investors that e-commerce was becoming more important.
It has been clear for months: With CEO Ready, e-commerce should be a transformative element. It is noteworthy that the first analysts are now also emphasizing this. Goldman Sachs recently raised its price target and issued a buy rating, citing that Pinterest stock may see greater e-commerce integration. If that increases average revenue per user, that should bring growth, more profitability, and more. But that’s actually no longer a secret.
Not priced in
Whether e-commerce is known regarding Pinterest shares or whether it still has subliminal importance is actually more of a secondary question for me. The decisive factor is that these growth opportunities have not yet been priced in.
Pinterest currently has a market cap of $17.4 billion. The price-to-sales ratio is 6.7 and even the 2021 price-to-earnings ratio of 52.7 is not favorable at first glance. However, e-commerce might open up a completely new, gigantic sales potential. In any case, this is not adequately appreciated for me at the moment, on the opportunities side. But at the moment the market is also more focused on the risks.
The item Pinterest Stock: E-Commerce Goes Mainstream appeared first on The Motley Fool Deutschland.
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Vincent owns shares of Pinterest. The Motley Fool owns shares of and recommends Pinterest.
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