Pinterest User Growth Returns in Q3 and Monetization Remains Impressive; Shares Undervalued

Unlike its peers, Pinterest reported better-than-expected third-quarter results as the turnaround in its user count was accompanied by increased advertising demand. Pinterest is becoming less of a platform for advertisers to experiment on and is now nearly a regular on their lists to purchase from. Pinterest’s resiliency toward macroeconomic uncertainty is mainly due to its ability to provide advertisers options through the entire marketing funnel, as most users access the app with a shopping or purchasing intent. This also generates valuable first-party data, which reduces dependence on Apple’s data on user behavior in other apps.