Pinterest CEO Steps Down: Is the Stock a Buy?

Typically, when a 39-year-old founder and CEO of a successful business decides to step down, it isn't a positive development. However, Pinterest (NYSE: PINS) might be an exception.

The social media company announced that CEO Ben Silbermann, who co-founded the business 12 years ago and has been in the top spot ever since, is stepping down from the role and becoming executive chairman of the company. The reason has to do with Pinterest's recent shift to focusing on the e-commerce applications of its platform, and it could end up being a long-term net positive for the business and its investors.

The short answer is that Silbermann is stepping aside to let someone with more e-commerce experience take the lead, as the social media company attempts to better monetize its 433 million users. As Silbermann said in the press release announcing the transition, "In our next chapter, we are focused on helping Pinners buy, try and act on all the great ideas they see."

Source Fool.com