Fundamentals don't just matter - they are the only significant factors in long-term investing. Returning to fundamentals, I isolate three superior companies for 2025. Nvidia's Owner's Yield of 5.1% and full-stack product lineup, including insatiable demand for the Blackwell chip series, with Rubin coming soon, position it well for future growth. PDD's Owner's Yield of 19%, significant cash rese...
Pinterest's unique position as a visual search engine and bottom-funnel advertiser creates a strong moat, leveraging network effects and seamless ad integration. The platform's international growth potential is significant, with rapid increases in MAUs and ARPU, especially outside the US. Pinterest's financials are robust, boasting high margins, substantial cash reserves, and no debt, with stro...
Pinterest's US and Canada ARPU is growing well due to increased user engagement and partnerships, but international ARPU lagged due to user base growth in developing countries. Forecasts for 2024 and 2025 reflect a mixed outlook, with lower 2024 revenue but higher 2025 revenue and adjusted EBITDA due to expected user growth and improved monetization. Set target price to $42 and rating to BUY.
Most tech stocks seem to be soaring, but not Pinterest. The market is concerned about decelerating growth - I am instead focused on the growing "cash cow." Pinterest has a net cash balance sheet and is imminently close to sustaining GAAP profitability.
Reddit (RDDT 2.94%) is growing users faster than Pinterest (PINS 3.06%), but Pinterest is more profitable.
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