Pinterest (NYSE:PINS) stock has come out as a winner in the pandemic.
The social media company has garnered massive users and generated revenue with new and interesting features.
This platform is here to stay and the surge in PINS stock is proof that investors are keen on using the platform.
PINS stock is up 184% over the year. However, it is showing volatility lately which is an ideal chance to add it to your portfolio.
PINS stock was trading close to $25 in July 2020 and hit an all-time high of $89 in 2021. The stock is currently exchanging hands at $70.
I believe the stock has strong growth potential and a massive market to cater to. With new updates and strategic partnerships, it will go higher in the coming year.
With that in mind, let’s take a look at the investment case for PINS stock.
Strategic Partnerships Drive growth
Pinterest has entered into a partnership with Marriot (NASDAQ:MAR) for the return of the travel. The companies will work together to create digital boards that will showcase travel information in two storefronts in Soho.
This is proof that companies are keen on entering into a partnership with Pinterest for its ability to create custom ads. It will also create an in-app quiz that will take the travelers towards their dream holiday.
Further, it expanded its partnership with Shopify (NYSE:SHOP) to 27 new countries. It is an easy way for merchants to bring their products on the platform.
Unique Tools and Features
Pinterest continues to introduce different features and tools on the platform to drive user growth and expand its market share.
The company understands that innovation is essential to keep the users interested in the platform. It already has 478 million monthly users and with the new features, it aims to increase the number.
The Shopping List is a feature where users can save the products in one place and shop whenever they want to. This feature is now available in Germany, Australia, France, and Canada.
Further, the company has announced the Idea Pins feature, which enables creators to publish long-lasting and savable content on Pinterest.
This feature is available across several countries. It will also allow creators to use new editing tools, video first features and music selection.
Idea Pins will allow creators to have their content published just the way they want and it is a feature that will attract more creators to the platform.
Further, it will also allow business accounts in different countries to create content that helps engage with their audience.
These features help attract users to the platform and encourage businesses to create ads to reach out to the audience.
The Bottom Line on PINS stock
Pinterest is a social media company that understands the changing needs of users and is offering the right features at the right time. It has gone beyond the home decor inspiration and bread recipes. The company now allows you to shop, create and share.
The company has gained tremendously amid the pandemic and it became the go-to platform for users. The surge in monthly active users is proof that Pinterest continued to offer inspiration to users across the world.
Sure, the lockdown measures are eased and people are venturing out, but there is nothing for investors to worry about. Allocate a small part of your portfolio to PINS stock.
Keep in mind, the farthest PINS stock has gone is close to $90, but at the current level, that will be an upside of right around 29%.
Pinterest will report Q2 earnings on July 27 and it should give a perspective to investors about the stock.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.