Better Buy: Facebook vs. Pinterest

Both Facebook (NASDAQ: FB) and Pinterest (NYSE: PINS) represent communication stocks at two ends of the social media industry. One company dominates more generalized social media. The other occupies a niche in areas such as food, crafts, and fashion.

Nonetheless, they both depend on advertising for most of their revenue. Thus, given the effect of COVID-19, they face the same challenge of increased engagement combined with dramatically less ad revenue. Consequently, both companies have declined to provide forward guidance.

Facebook and Pinterest should see a recovery in ad revenue as people and businesses resume activity. Hence, investors should look to the future when deciding which stock offers a better buy right now.

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Source Fool.com