Explore whether or not to invest in this growing social media platform.
Packed with an endless array of recipes, tutorials and ideas, Pinterest boasts some 250 million active monthly users attracted to its visually appealing social media. A recent IPO provides a valuation of more than $12 billion. And with a recent IPO, it’s now possible to buy and sell Pinterest stock.
Recent stock performance of PINS
Consider the recent performance of Pinterest’s stock. The moving average is a trading indicator that reflects the strength, direction, momentum and duration of a trend. Indicators can give you an idea of a stock’s recent behavior, but past performance does not guarantee future results.
Pinterest’s technical performance
A technical analysis is the study of a stock’s past price and volume movements to inform trading decisions. The moving average — or MACD — is just one of many indicators used in technical analysis to track market trends and stock movements. Bollinger Bands, relative strength index, parabolic stop and reverse and similar tools can help you decide whether it’s a good time for you to invest.
Here’s what key indicators say about Pinterest’s current stock trend, according to charting service TradingView.
Pinterest’s financial performance
Review how Pinterest has performed as a company over the past three years.
|Pinterest financial reporting figures||Revenue||Operating expense||Net income||Total assets||Total equity||Number of employees|
|2017||$472.9 million||$610.8 million||-$130 million||$1.2 billion||$918.9 million||800|
|2018||$755.9 million||$830.8 million||-$63 million||$1.2 billion||$870.8 million||1,600|
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How to stay up to date with Pinterest stock
Before buying or selling Pinterest stock, monitor reports, news and details that can help you understand how the company is performing:
- Financial reporting. Find out when the company releases its financial reports that reflect how the company is performing, which affects the stock price.
- Company news. Stay current on news through the company’s website and other media platforms. Expansions, hirings or firings, new features and other news can affect the company’s stock.
- Wider news. Watch for external events that could affect Pinterest’s share price. This could include laws regarding Internet content, industry developments and related news.
- Shareholder meetings. If a company pays dividends, they pay some of their profits back to shareholders. Currently, Facebook does not pay dividends on their shares.
- Shareholder meetings. These meetings invite large shareholders to attend and vote on company-related matters that can affect the company’s stock price.
- Dividends. Some companies pay dividends to shareholders. Pinterest plans to reinvest profits in the company.
What to consider
Before investing in a company, know the answers to key questions like:
- What does the company do? Pinterest’s platform is straightforward. But if you can’t explain what a company does in a few sentences, you may want to do some research before investing.
- Is it turning a profit? You can read earnings reports to learn about a company’s profitability. Keep in mind that social media companies like Pinterest may focus on building a user base before monetization, so it might not generate a profit immediately.
- Who are the main competitors? While Pinterest’s platform is different from its competition, its main competitors appear to be Snapchat, Facebook, Instagram and Twitter.
- Who runs the company? Knowing the people who run the company might shed light on its stability and management style.
- Is the company’s position sustainable? If you’re looking for a long-term investment, think about how the company might operate over time.
- Is there room for future growth? Pinterest is a large company, but it’s only recently gone public. Find out how it expects to grow in the short and long term.
How to buy and sell Pinterest stock
You’ll need a self-service or full-service brokerage account to trade Pinterest stock.
- Self-service brokers. Websites and discount brokers allow you to buy and sell shares on your own without the benefit of advice or assistance. A simple approach allows for low fees on each transaction.
- Full-service brokers. Offers a personalized approach to investing that often includes financial advice. After getting to know your financial situation, your broker can buy and sell shares at your command. But an involved approach can mean higher fees.
Pinterest is a popular social media platform that’s new to the stock market. Its recent valuation and IPO may attract investors wanting to get in on the action, but do your research jumping in. Consider the company’s recent financial and stock performance, then compare investment or brokerage accounts that meet your needs, budget and investment expertise.
The value of any investment can go up or down depending on news, trends and market conditions, so there’s no guarantee you’ll make money. Do your own due diligence to understand the risks before you invest.