Pinterest (PINS), mcap=$14bn, price $19.65 vs $22.50

Pitch: Sustainable business model with users having high commercial intent and open to ads (think GOOG Search). Not expensive on 2023 numbers. Market overly focused on 2022 – which is expected to be bad as the pandemic bump unwinds. Investing to build a creator-led video-content ecosystem and grow on-platform shopping functionality. Margins are expected to continue improving with scale (now at 15% EBITDA). Rumored to have been an acquisition target by MSFT and PYPL.

Valuation: PINS is attractive on 2023 estimates of $4bn revenue (vs $2.5bn for 2021) and $1bn in EBITDA, or 3.3x sales and ~13x EBITDA.

Exp. gain: Not provided

Full PINS write-up (free guest account required):

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