Today's video focuses on the fundamentals, stock price movements, valuation metrics, and recent news affecting Pinterest (PINS +1.05%) and Etsy (ETSY +0.89%). Here are some highlights from the video:
- On Oct. 6, Pinterest announced a "slideshow for collections" feature, a more straightforward method for reaching and converting Pinterest shoppers. Pinterest states that shoppers on its platform have 85% bigger baskets than shoppers on other platforms and spend twice as much per month. The new feature is a way for advertisers to encourage that bigger basket behavior. Pinterest's stock price is down over 40% from its 52-week high closing, which can be seen as a buying opportunity for long-term investors.
- This year, Etsy has made two acquisitions to accelerate its growth into international markets and increase the products it offers. Depop, a fashion re-commerce marketplace, has increased Etsy's expansion in the United Kingdom, United States, and Australia. El07, a company known as the Etsy of Brazil, accelerated Etsy's growth in one of the largest Latin American economies.
- In the video, I take a closer look at two valuation metrics, forward price-to-sales ratio and forward EV-to-EBITDA ratio. Historically, Pinterest tends to be more expensive in both ratios when compared to Etsy. After the recent downtrend in Pinterest stock price, Pinterest's valuation ratios are lower than Etsy's, which may be a sign that Pinterest is undervalued at the moment.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Oct. 6, 2021. The video was published on Oct. 6, 2021.
