Pinterest (NYSE:PINS) shares have gotten banged up over the last few months as the company turned in a pair of disappointing earnings reports. User growth declined on a sequential basis, leading some investors to believe that this growth story is over. However, there are also a number of reasons why this looks like a good buying opportunity for Pinterest stock.

In this segment of "The 5" on Motley Fool Live, recorded on Nov. 23, Fool contributors Jason Hall and Jeremy Bowman discuss why Pinterest stock looks appealing right now, down more than 50% from its all-time high.

 

Jason Hall: There's a second part of this, and this is right up Veehan's alley, his question. The follow-up question is, "Is there a stock that has fallen significantly from its high," Jeremy, kick us off on this one too, "that you have your eye on right now?"

Jeremy Bowman: What's happening with this tech sell-off reminds me of Pinterest, I think it's down a little more than 50 percent from its all-time high back in February and trading around, I think it's between 30 and 40 billion mark cap. Basically, like we saw with Zoom and some of the others, the user base slipped especially domestically and they've had some headwinds lapping that strong performance a year ago. But like I was saying before, to me, these are more short-term concerns and I think there were some comments on the last earnings call that the user base is stabilizing now and I think they're going to return to growth. I think the product itself is great and they're constantly rolling out a lot of new features for advertisers and users. It's a great business model. It appeals a lot to advertisers and you have a user base that comes there, often ready to buy something. That gives them an advantage over other social media businesses and they have also been very profitable lately, so which is unlike a lot of the tech stocks we follow. I think, does it have the 10X potential? Could it get to 300, 400 billion over enough time? Yeah, I think it could. Certainly, I'd like to see how the next few quarters develop, but I think if they get back on track, I think the answer to that question is definitely yes.

Hall: I think so. I agree with Jeremy. It's not like Pinterest is losing eyeballs to another social media platform, it's losing eyeballs to the real world. That's the transition people are making to going back to normal and being able to go meet friends at bars and restaurants and in-person activities. I think that's the period they're going through and we're going to see some normalization and maybe we start seeing those user rates start growing like you said, Jeremy, but this is an international growth and a monetization opportunity. I think you're 100 percent right. I want to be buying more.

Bowman: Definitely. I should mention, I think a lot of the users that they've lost were lower-value users who might have stopped by during the pandemic to see what it was about. But I think they are core user base has been pretty solid, so something like that.

Hall: Yeah, I think you're right, and for just for anybody who mentioned that Jeremy, you were breaking up a little bit earlier. That's Pinterest, ticker PINS. Love the company. I'm right with you on that one.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.