Many times, things happen that seem to be never happening, never foreseen, and are unexpected. But as they say, change is the only constant and so is the reality. Many companies have also been on the same trail and another big name that joins this list is Pinterest. As the former CEO Ben Silbermann steps down from his post, it is time for another major change that Pinterest looks forward to. Now is the time to look out whether the Pinterest stock is worth buying or not. Let us know more about that the Pinterest Stocks Jump After Bill.
CEO Ben Silbermann stepped down from his role and became the executive chairman after being in the top position for 12 years when he co-founded the business. Bill Ready is the current CEO of Pinterest and plans to take Pinterest to the next level of growth. The stocks, therefore, seem to be highly investible.
Is Pinterest Stock Worth Investing?
As Bill Ready takes up the position at the helm, the stock of Pinterest has jumped immensely. Having lost a major chunk of users in the last year, Pinterest now sees a great amount of potential lying untapped in front of them.
Pinterest tends to change its focus from being an ad-centric, idea generation model where people came in looking for ideas for various activities and then applied or bought them in real life to a model that is more of an e-commerce-based platform where “Pinners” would be able to buy, try and act all the ideas that they like. There lies humongous growth potential if Pinterest could include the buying factor in itself which having Ben as the CEO was quite non-achievable.
User monetization of Pinterest is also very low as compared to that of other social media platforms which could be easily bridged by incorporating e-commerce within the app.
What does the new CEO bring with him?
The new CEO Bill Ready is an expert in the area of commerce and payments. He has been the President of Commerce at Google for around a couple of years, CEO of Venmo and Braintree, and an executive at PayPal as well along with many others.
Bringing with him such a great amount of experience, he is nothing less than a pro in the field of e-commerce and now when Pinterest plans to shift and evolve in the e-commerce field, he is the perfect man to be in a position to lead the company in the direction of incremental growth by monetizing more than 433 million users around the globe.
Bill Ready also stated his enthusiasm in a post on LinkedIn that said being someone who has worked in the commerce and payments sector for most of his career, Pinterest seems to be a good opportunity to make something unique and special.
Is it time to buy Pinterest stock?
Arguments in favour of Pinterest revolve around its low valuation, big total addressable market, and evidence of scale economies. As of March 31, it reported a user base of 433 million active monthly users that increased 2 million from the prior quarter.
At the start of the pandemic, Pinterest flourished since billions of people searched for ways to pass time while confined at home. Therefore, Pinterest has enough room to grow in the long haul. The app is free of cost to use and reportedly, $763 billion were spent by marketers for advertisements making it the mainstream of revenue for Pinterest which makes it a high probability to achieve greater heights of success. Pinterest turning to e-commerce is a great plus for the company for the same.
On the other hand, the change of basis of the platform to that of e-commerce doesn’t seem to go down well. It should pull off its socks in that field and tap the opportunity to its fullest.
Therefore, the decision to buy Pinterest stock depends on the tendency of risk-bearing or tolerance of the public. It is just the case of greater risks and greater return and hence completely depends on how long you are ready to tolerate the risk.
Conclusion
As the leadership of Pinterest changes, chances of Pinterest of either hitting the rock bottom or touching sky-high change. Bill Ready is said to be the best leader for Pinterest to be successful by turning it into an e-commerce platform, making it seamless for customers to get their favourite ideas in hand. Having said this, there are also chances that Pinterest is most likely to shoot up its business revenues which concludes making it a buy-buy for now. But again, it finally depends on how long you are ready to tolerate the risk.
Frequently Asked Questions (FAQs)
Q1. What are the top stocks to invest in?
Top stocks worth investing in are Devon Energy Corp., Marathon Oil Corp., Qualcomm Inc., and Berkshire Hathaway Inc.
Q2. How old is Bill Ready?
Bill Ready is 40 years old, the new CEO of Pinterest.
Q3. Has Ben Silbermann left Pinterest after stepping down?
No, Ben Silbermann has stepped down to the position of Executive Chairman of Pinterest from CEO.