but since then the stock was in a downward channel for a while not the most
uh respected downward channel I’ve ever seen but still pretty nice and then it's switched to an
upward channel and with the news from this week of Snapchat Stock (SNAP Stock) beating earnings
and having the fantastic ad revenue the whole sector has been up for a majority of the week
and so as a result Pinterest Stock (PINS Stock) has broken out of this upward
channel I’ll extend this to the right and so breakout is usually very bullish for someone
like myself that trades primarily based off of technical analysis not a great situation for me
right now I would call this a speculative stock based off of the fact that
uh it is out of any trend that I was potentially going to be playing the trend is your friend
and in this situation it's definitely feeling bullish based off of it breaking out to the upside
on higher than expected volume we saw that jump on Wednesday which is why it gapped up
so you have there's a lot of positives going with Pinterest Stock (PINS Stock) but my
problem is for a technical trader I don't see a lot to go off of it feels very speculative on
the idea that it's going up because of good news and good earnings but I don't have any more
I don't have a price target I talked about bank of America raised its price target to 58 dollars
but based off the charts that's very I don't know just seems like a random number there's no
real reason behind it so at this point I’m going to be sticking on the sidelines and
not taking a position in Pinterest Stock (PINS Stock) one because I don't fully understand
the business and it's not something that I use on a day-to-day basis uh and two based off the
charts I don't see anything here that tells me to specifically take a position right now I’ll
go back to Facebook Stock (FB Stock) we have this fantastic trend right here and if it comes back
down to this level I will happily take a position because there is a trend that I would be playing
and I feel a lot more confident going into the end of the year uh the election based off of trading
a trend that is very set in stone when you go back to Pinterest Stock (PINS Stock) it's out
of that trend a breakout to the upside is fantastic if I was in a long-term
position for Pinterest Stock (PINS Stock) I’d feel very good about it right now but
since I’m not currently a shareholder I don't see a great opportunity to get in so someone what I’ve
been talking about mainly this week is since we kind of missed out on a great opportunity before
this news came out I’m going to be waiting I’m hoping that the earnings report that comes out
by the end of the month might push it back down into this channel and then I’ll take a look at it
but right now Pinterest Stock (PINS Stock) is not something that is really catching my
eye I’m very happy that it broke out to the upside because this is a company that I think
is a is pretty solid overall I just but based off the charts I don't see anything super attractive
that would warrant me taking a position right now okay so Pinterest Stock (PINS Stock) is
very different than the rest of the social media stocks out there they do rely heavily
on a lot of their ad revenue but from what I’ve seen it's very more directed and is rewarding
companies that increase interactions and less about just people seeing the actual content so
they've had some deals 2015 Pinterest Stock (PINS Stock) had a deal with apple that made
it so you can download apps directly through their interface so far this year they've partnered with
adobe for the Pinterest Stock (PINS Stock) partner program to optimize targeting and shopping tools
for businesses who try to maximize the amount of money that they can make from the platform
and then back in may the company partnered with Shopify Stock (SHOP Stock) to improve sales
so the company has been partnering with a lot of these major giants and e-commerce who
had kind of changed the way that they're making money instead of something like a Twitter Stock
(TWTR Stock) where it's mainly advertisers are paying for people to see their platform and
to see their posts that they're putting out there for Pinterest Stock (PINS Stock) it's
mainly about uh trying to promote e-commerce and people to actually buy stuff so I think
Pinterest Stock (PINS Stock) it is a social media stock but I think it's more
of a search engine that promotes e-commerce more than it is just an actual social media site
so some stats about the platform in the last quarter they had 416 million monthly average
users which is a 40 increase year every year uh so compared to some of the other platforms
we talked about this week obviously not as large as something like a Facebook Stock (FB Stock) but
I believe it is larger than uh Snapchat Stock (SNAP Stock) just barely and I think I can't
remember what the numbers were for Twitter Stock (TWTR Stock) but I think it's higher than that
71% of their users are female and those female users account for 93% of the total pins that
you see on Pinterest Stock (PINS Stock) so the female demographic is very strong here
and that is kind of transformed the business from more of just being a lot about projects and now
it's a lot about businesses are partnering with uh Pinterest Stock (PINS Stock) to try
to promote their products and it seems to be going relatively well
from the numbers that I could find 83 of people that use Pinterest Stock (PINS Stock) weekly
have made a purchase from content that they've seen on the site which is a number that I was
pretty surprised about that's pretty high and then nine out of 10 users have described the platform
as being filled with positivity and so I’ve talked to some friends that use a lot of the social media
platforms and they say that they really enjoy Pinterest Stock (PINS Stock) because there's no
politics it's mainly just the content you really want to see and so Twitter Stock (TWTR Stock) you
can definitely go through your feed and kind of curate it in a way you want but for the most
part Pinterest Stock (PINS Stock) is filled with positivity and it seems like people really enjoy
that that it's very disconnected from the rest of the social media platform so there's a lot
of hate and negativity going to their platform the number that I usually look at so I usually look at
the user data for the monthly average users and that's very impressive with that 40
increase but for the average revenue per user which is a pretty important statistic to see how
efficient the company is at bringing in money per user it's very low at 70 cents per user
so not great it's down 21 year over year from that last quarter uh it's mainly from the problems with
the pandemic where a lot of these businesses since they're less going about just people seeing their
content and it's a lot about trying to promote traffic to external sites it makes a lot of sense
that maybe people aren't interacting with that as much and businesses are also not trying to spend
as much so I think it's kind of a double whammy there instead of uh for the other sites we've seen
an increase in user base during the pandemic so the users are there but it's the advertisers that
have been kind of reeling it back and I think on Pinterest Stock (PINS Stock) it's a mix of
the average consumer probably was not spending as much and the advertisers were not willing to spend
as much either so it will be very interesting to see what happens with their earnings report
at the end of this month to see if that bounces back like the rest of the social media stocks
so looking at their books their revenue has seemed to level off a little bit the past two
quarters they both saw a revenue of 272 million dollars in that last quarter that was only a 4.2
percent increase year over year so this definitely comes from the pandemic and I’m not going to make
any judgments based off of that you still have positive growth year every year but I’ll be very
curious to see what happens with this next quarter to see if it can continue the growth or if it's
going to stay on this kind of lower trajectory that we've seen with two consecutive quarters at
272 million dollars the company is not profitable yet and they've only had one quarter of positive
net income which was quarter four of 2018 right before it IPO’d so similar to a lot of these tech
companies the social media stocks uh not positive at this point yet so I’m going to be watching that
going forward the last quarter they had a net loss of 101 million I’m not super worried about that
especially when you see it they have 1.7 billion dollars in cash on hand no long-term debt and a
shareholder equity of 1.9 billion so I don't see any major red flags there something to watch going
forward is based off of this incredible rise that we've seen recently and the fact that it's broken
out of this upward channel the shorting volume has increased significantly so when I think of these
most shorted stocks recently I think it's something like a Gamestop Stock (GME Stock) and so
28% of the volume traded on Gamestop Stock (GME Stock) has been short which is very high
Snapchat Stock (SNAP Stock) surprisingly is at 25% interest is at 21% so I think it's possible that
we might see a minor short squeeze uh what this means is going into earnings you have the catalyst
that will move the stock up significantly or down significantly and if things go really well and the
stock shoots up since a lot of these people are probably betting on the stock to fall for the
earnings report for a lot of the option stuff they might have to close out their position and
the way that shorting works is you are borrowing shares from your broker you are selling them
and you're hoping to buy them back to give back to your broker at a lower price
and so that buying triggers the stock price to go up because you have to your increasing the volume
for the buying and so if the stock goes up a lot of people will be forced to cover their shorts at
a loss and will push the stock up higher so I’m going to be watching that going forward
very interesting that it's at more than 20 percent considering Gamestop Stock (GME Stock) which in my
mind is probably going to be the heaviest shorted stock for a while I was only at 28 so right now I
think that Pinterest Stock (PINS Stock) is a solid stock I think it's very speculative based off of
the charts not being able to see any uh distinct trends for me to play going forward but
now I wanted to kind of rank how I feel about all the social media stocks that I’ve talked about
this week so I think definitely obviously I’m not giving advice but this is how I feel about
these stocks Facebook Stock (FB Stock) definitely the safest one out there they have an incredible
amount of net income they have billions of people using their site and it's relatively safe
they do have that kind of crosshair coming from the department of justice starting the
anti-trust stuff but I don't see Facebook Stock (FB Stock) as being as in danger as something
like the apple and the google that we've seen recently so I’m not really worried about that I
still think my favorite social media stock overall is probably Snapchat Stock (SNAP Stock) definitely
a little bit overextended right now and I don't love the current price that it's at
but if it does fall I will happily take a position and snap I think the best long-term
potential I think is Twitter Stock (TWTR Stock) I think the user base is only going to continue to
increase I think it's reliance on how people are getting their news now will continue
the interactions that people have on there we have had some interesting stuff with
um election stuff maybe the revenue will drop off after the election's over we're going to have to
watch that but I think Twitter Stock (TWTR Stock) is probably in the best spot going forward I think
it's at a relatively reasonable price and so I don't mind Twitter Stock (TWTR Stock) right now
Pinterest Stock (PINS Stock) is one of those platforms that I don't feel comfortable buying
right now one it's out of that trend so I don't have anything to trade it based off of that
also I don't use the platform specifically that's kind of what I view as one of the most important
parts of my trading philosophy if I buy stocks that are at a discount none of these stocks you
could say are at a discount but it's in a platform and something that I use on a regular basis
because that gives you a level of confidence for a long-term play say you buy a company that you've
never heard of before and it falls 10 in one day you're probably not going to be as confident as if
it's a company that you use on a regular basis and you trust the management to get them back
on track so Pinterest Stock (PINS Stock) is not something that I use everyone that I know that has
used Pinterest Stock (PINS Stock) and it actively does use it still loves it but it's not something
that I use not really the user base that they're not trying to target me certain 71 percent of
their users are female and 93 of their total pins come from females so it's a lot of a sight about
planning out future projects and it's going to be very interesting to see how they
um integrate all these shopping options with e-commerce we've had that recent deal with
Shopify Stock (SHOP Stock) which should increase revenue and I’m very curious to see what happens
with this next earnings report on the 28th of this month so let me know what you thought
about Pinterest Stock (PINS Stock) overall do you think it's a good opportunity right now or
do you kind of feel the same way I do that now that it's out of that upward channel might be
time to kind of wait and see what happens so let me know in the comment section down below
let me know what you thought about my analysis this week of the social media stocks I have not
decided what type of tech stocks I’m going to be talking about next week but I’ll figure that
out in the next couple days and I will see you for that video on Monday thanks for watching