Does Pinterest's New CEO Make Its Stock a Buy?

Long-term investors in Pinterest (NYSE: PINS) have experienced a genuine roller-coaster ride. After the company went public in 2019 at $19 a share, the stock sank to a low of $10.92 during the pandemic crash of 2020. Then it surged, reaching an all-time high of $89.15 less than a year later. But since early June 2021, it has been back on a downslope, and after all those maneuvers, on Thursday, it was once again trading in the neighborhood of $19.

Because the past few years in the stock market have been so volatile on a large scale, it's hard to tell how much of Pinterest's share price movements have been due to its business performance, and how much should be attributed to the broader market conditions. At least within the company, it appears there has been a realization that changes need to be made, and this week co-founder Ben Silberman stepped down as CEO. Let's consider what the pending leadership change might mean for the future of the business.

Pinterest is a social media platform where users come for ideas and inspiration. By "pinning" ideas they like to boards, users can share what excites them, and refer later to these ideas in order to turn their inspirations into reality. For most of Pinterest's history, the story has been about user growth and the revenue generated by selling ad space to go alongside its user-generated content.

Source Fool.com