Today, we will tell you about stocks. This Stock Is Already Up 34% in 2025|Its Growth Is Getting a Big Boost From Amazon and Alphabet. Let’s get started:
Few companies have been significantly valued at $1 trillion or more in the past stock markets. However, Amazon (NASDAQ AMZN) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), the leading company behind Google, are among the few. It isn’t easy to imagine two corporations as significant and vital as these. This duo is growing into a smaller one.
I’m talking about an image-browsing site called Pinterest (NYSE PINS). PINS’ 553 million monthly users generally use the platform to find inspiration. Users can click on images they like, which will bring up similar pictures. When browsing this way, users of Pinterest will get ideas for DIY home projects or discover items they’d like to buy.
This last aspect determines Pinterest’s business model. It’s completely free, leaving the company with the ability to earn revenue through advertising. Marketers and brands love the Pinterest platform because users visit the site to purchase something rather than just socialize like other social media sites.
On 6 February, Pinterest announced earnings for its fourth quarter in 2024, an essential catalyst for the stock’s 34% year-to-date gains. The company’s revenue for the fourth quarter increased by 18 per cent, which is why investors are optimistic. However, the most essential part of the company is also the least monetized portion. That’s why Amazon and Alphabet are involved in this intriguing story.
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Pinterest is a popular social media platform with active U.S., Canada, and Europe users. However, 56% of users are from other countries than those mentioned above. The “rest of world” users thus constitute the majority of the company. Also, they’re the ones that are least monetized.
On average, Pinterest made $6.94 per user in 2024. For users outside of those in the U.S., Canada, and Europe, It earned $0.59 per user. This is over 90% lower monetization rate than the company’s average overall. It’s an enormous difference since this accounts for over half the user base.
The horizon, however, appears more luminous. In Q4, the average revenue per user for non-world users was $0.19, up nearly 24% over the previous year. The growth rate is accelerating in one of the company’s more crucial areas. Management attributes some of that to partnerships with Amazon and Google.
In terms of online advertising, Google is the leading player. However, Amazon is a major player, too. In the year 2024, Pinterest expanded partnerships with both companies. In essence, the company was struggling to increase first-party advertisement market share in several markets around the world. The platform is still too new and not widely known for advertisers to consider giving it a go. However, they’re less hesitant to invest in giants like Google and Amazon.
Google and Amazon are integrating their advertisements into Pinterest’s platform. With these partnerships with third parties, Pinterest generates more revenue per user. This is good news regardless of the market it is in. However, in the long run, it can be highly advantageous if it aids the company in increasing its revenue from its users worldwide since this is where most of its customers are.
There are additional aspects to consider before buying Pinterest shares. It is enough to state that possible returns to shareholders are expected due to its improvements in monetization in other regions around the globe. This trend will likely continue due to the company’s partnerships with Google and Amazon.
Do you need to invest $1000 in Pinterest today?
Before you purchase stock on Pinterest, Consider these things:
The Trading User Platform Advisor analysts have determined what they believe to be the most desirable stocks that investors can buy right now… as well. Pinterest was not among them. The companies that made the list could generate massive profits in the years ahead.
Think about when Nvidia released this list on 15 April. If you had invested $1,000 on the date of this recommendation, you’d be sitting at $850,946! *
It’s worth noting that the Stock Advisor’s overall return on assets is 959%, which is a market-destroying outperformance compared to 178% in the S&P 500.
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