Pinterest (NYSE: PINS) is a bit of an anomaly compared to typical social media companies. It's not meant as a news feed but rather a collection of images and videos to serve as ideas and inspiration. Because people often go to Pinterest looking for inspiration, the platform is prime advertising real estate.

But Pinterest doesn't make nearly as much average revenue per user (ARPU) relative to its peers. This gives the business immense growth potential, but the stock has fallen with the broad market, shedding 37% this year and down almost 75% from its all-time high. So are investors looking at a potential multibagger?

The Pinterest investment thesis hinges on ARPU growth, because user growth has been nonexistent over the past year.

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Source Fool.com