Pinterest's Down 60%, but Will a New CEO Unlock Massive Potential?
Over the past few years, social media app Pinterest (NYSE: PINS) has seen the highs and lows of market sentiment. During the bottom of the pandemic dip, shares fell to $11. Several quarters of strong user growth fueled by pandemic lockdowns spurred on a bull run that saw Pinterest's price skyrocket to $89 in early 2021, only to fall more than 80% over the next year and a half. At the time of this writing, shares are trading for approximately $25.
Much of what drives Pinterest's price movement is its user growth and how those users are monetized. New CEO Bill Ready was brought in to take Pinterest to the next level and unlock its potential. Taking a look at some key metrics may provide some insight into whether his plan can work.
Pinterest sits at an interesting intersection of social media and idea inspiration. Its users (called Pinners) visit the site to find ideas for everything from vacations to home projects. In this sense, Pinners benefit from Pinterest's network effect. Put simply, the more users on the platform sharing content (called Pins), the more beneficial the platform is to users.
Source Fool.com
