PINS - Embedded Expectations Analysis - 2021 01 26
Pinterest, Inc. (PINS:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 169.0x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about revenue growth, advertiser insights, and new user trendsSpecifically, management may lack confidence in their ability to sustain international revenue growth, maintain high viewership rates, and accelerate monthly active user growth. Moreover, they may lack confidence in their ability to provide unique insights to advertisers through the Pinterest conversion analysis and conversion insights tool and deliver quality content advertising. Furthermore, management may be concerned about the sustainability of their increased upload speed performance and new user behavior trends. Management also may be overstating the potential of new features and the quality of their investment opportunities
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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