Bill Nygren Comments on Pinterest

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Apr 08, 2020

Pinterest, Inc. Class A (PINS, Financial) (PINS – $15)
Pinterest is an online discovery tool with a large and growing user base who visit the site to find ideas and inspiration for their personal tastes, interests and hobbies. We believe it is also an attractively valued investment opportunity as it has recently fallen to $14 per share from its high of $36 per share, which it hit last summer. Unlike many consumer internet companies, users and advertisers are fundamentally aligned on the site. Pinterest provides its users with information that they are actually looking for as opposed to trying to distract them from a newsfeed or chats with friends. The company also gives advertisers access to an audience of people with high commercial intent along with the ability to integrate ads in a natural way. Although Pinterest has more than 300 million active users from around the world each month, the company is in the early days of monetizing its platform. We believe that its shares are currently trading at a material discount to the company’s intrinsic value when benchmarking revenue and margin potential against its more mature internet competitors.

From Bill Nygren (Trades, Portfolio)'s Oakmark Fund first-quarter 2020 shareholder commentary.