Pinterest and Etsy Positioned for Long-Term Growth Despite Near-Term Headwinds
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Pinterest (PINS) is a visual platform with significant potential to capitalize on digital ad spend over the next 5-10 years through its own initiatives and partnerships. Revenue and users are increasing again after pandemic declines.
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Pinterest launched new lower-funnel ad tools in 2023 like direct links and mobile deep linking to help convert users into customers. Early adoption rates by advertisers are promising.
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Etsy (ETSY) faces near-term headwinds but has seen tremendous gross merchandise sales, revenue, and profitability growth over a 4-year timeframe. Habitual buyer counts are up 184% over 4 years.
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Despite 2023 declines, Etsy still reported solid free cash flow and operating cash flow. Its P/S valuation has dropped to about 3.3, presenting a potential buying opportunity.
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Both Pinterest and Etsy seem like compelling long-term investments that can withstand and outlast short-term market turbulence.