Thursday's debut of Pinterest (PINS -0.60%) was a success by any measure. The social-discovery darling soared 28% in its first day of trading, and there's no reason to believe that even better days aren't ahead for the fast-growing internet platform operator.
Investors like that "new stock" smell, but there are a couple of companies with longer publicly traded histories that may fare even better. Amazon.com (AMZN 1.75%), Glu Mobile (GLUU), and Etsy (ETSY 1.03%) are three investments that investors suddenly interested in Pinterest may want to pay attention to now.
Kicking off this list with the world's largest online retailer may seem odd, but there's a twofold reason for starting with Amazon. The consumer-facing reason is that Pinterest inspires hobbyists to dive deeper into cooking, fashion, and home decorating -- and all of those crafty diversions require supplies that Amazon will gladly provide at prices that are typically lower than local solutions.
The more Pinterest-specific reason for starting here is that Amazon.com and Amazon Web Services are mentioned roughly a dozen times apiece in Pinterest's prospectus. Pinterest leans on AWS for the vast majority of its computer, storage, and data transfer services. Pinterest may never move the needle for Amazon given the global popularity of AWS, but the more Pinterest grows, the more money it will probably send Amazon's way to pay for its cloud-hosted services.
If Amazon seemed like an odd suggestion for potential Pinterest investors, a mobile gaming developer may seem outright bonkers. However, a quick dip into Glu Mobile's library of apps shows that two of its releases, Design Home and Covet Fashion, are accounting for nearly 60% of its bookings. Are you getting the Pinterest connection now?
Design Home has been Glu Mobile's top game for the past two years. It's the country's top home decor game, a mobile gaming category that you probably didn't know even existed. Design Home lets players tap into their inner interior decorator, and it's been huge for Glu Mobile. Bookings soared 61% in 2018. Covet Fashion is Glu Mobile's third biggest contributor, and it lets budding fashionistas create outfits based on real-world clothing items and accessories from leading brands. Covet Fashion has been around for six years, yet it still grew its bookings by 28% last year -- accelerating to 49% growth in Glu Mobile's latest quarter.
Pinners on Pinterest love exploring home decor and fashion trends, and it's probably not a coincidence that the growing community there has also inspired the growing number of players for Glu Mobile's lifestyle apps. The stock has nearly tripled since the start of last year, so it's not just Pinterest that's hot these days.
Another hot stock cashing in on the Pinterest boom is Etsy. If Pinners inspired by sharing their crafty ideas start feeling entrepreneurial, they can sell their creations through the leading online marketplace dedicated to handmade goods. Artisans sell their homemade jewelry, bags, clothing, home decor, and more through Etsy.
Etsy's popularity continues to grow. Revenue has accelerated for seven consecutive quarters, and the stock has more than tripled since the start of last year. Etsy boosted its seller fees in the springtime of last year, and it didn't scare away the artisans who call the platform home.