I decided to share some light on one of my biggest portfolio holdings: Pinterest ( $PINS )

Pinterest the social commerce company for the future.

THREAD

1/ The value proposition

Pinterest is a social media company mainly used by users to search for ideas. The ideas can be: what jewelry to buy, what to cook, how to furnish your house...

Ads on the platform are not disturbing but rather wanted by the users as they can be ideas.

2/ The user demographic with power

71 % of $PINS users are women. $PINS captures 83 % of all US women between the ages of 25 – 54. This is a staggering number as this is the audience that makes 80 % of buying decisions in the US household.

3/ The growth

Pinterest has over 442 MAU (Monthly Active Users), and even with that number, it is still growing its user base at almost 40%. In fact, in the last year, the growth has accelerated. Pinterest still has a huge international audience to catch.

4/ Monetization

Pinterest, compared to its peers, hasn’t really monetized their ex-US user base. Even though the platform is more “ad-friendly” to users. With more than 75% of the users ex-US, this base's monetization will bring a significant boost to revenue in the future.

5/ Valuation

Despite the big runup in stock price, the valuation, if we value $PINS based on a user's value according to the market cap, $PINS is still very favorable compared to its peers. Even more so when we put in context the ad-friendly platform and powerful demographic.

6 / Acquisition

If Big Tech weren’t under big antitrust pressure, $PINS would probably be already acquired. Nonetheless, the latest saga around TikTok showed many potential players looking into the space ( $WMT, $MSFT, $ORCL ). These companies even may get regulatory approval.