Pinterest's Partnership With Amazon May Be More Significant Than Most Investors Realize
On April 27, image-browsing platform Pinterest (NYSE: PINS) announced a partnership with e-commerce giant Amazon (NASDAQ: AMZN). Since then, shares of Pinterest have dropped 3% in value -- the market doesn't appear to be impressed at all with the partnership.
When I first found out about Pinterest's partnership with Amazon, I was excited. After all, when you partner with a company valued at $1.3 trillion, good things can happen. But new details have emerged regarding this partnership, and I believe this is even more meaningful for Pinterest's shareholders than I originally realized.
Pinterest's platform doesn't have posts; it has "pins." Pins are images uploaded from a device or saved from somewhere online, and users browse these images looking for ideas and inspiration. While browsing pins, users are exposed to image-based advertisements. Displaying these ads is how Pinterest makes money.
Source Fool.com
