Even more so, as the US users also drive a significantly higher average revenue per user compared to the international users. Having seen four straight quarters of growth coming in at 30-39% in MAUs, it was a significant drawback to see the Q2-2021 growth come in at 9% with a 13% international growth and negative 5% US growth. Pinterest is priced as a high growth stock meaning the response is strong when the company published what can be perceived as weak Y/Y growth. The culprit responsible for that development is found within the development of its monthly active users (MAU). Within just a couple of days, the company traded 25% lower and it has continued sliding since then up until now. Pinterest Inc ( NYSE: PINS) is currently trading at the same level as it did back in October 2020 currently trading 30% lower since July 29th this year where the company reported its latest quarterly performance. At that point in time, LinkedIn had roughly 430 million users, which is fairly close to that of Pinterest while of course mentioning that the platforms are different. As laid out in this reuters article, Pinterest would also be sold at a relatively low price in comparison to what Microsoft ( MSFT ) paid for LinkedIn back in 2016 when measured on TTM earnings. This is therefore not discussed within this article, but as a fellow shareholder I will say that I see more value in Pinterest as a long-term investor than the immediate payoff following an acquisition, and that I therefore hope it will remain a rumour. Author Note: This article was composed prior to the news related to a potential acquisition of Pinterest by PayPal Holdings Inc ( PYPL) for $45 billion at $70 per share.
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