PINS ~ Pinterest, Inc.

Pinterest, Inc. is a social media web and mobile application company. It operates a software system designed to enable saving and discovery of information on the World Wide Web using images and, on a smaller scale, GIFs and videos. The site was founded by Ben Silbermann, Paul Sciarra, and Evan Sharp.

We like the Pinterest story, because it’s supported by secular user, revenue, margin, and profit growth drivers. Second quarter numbers breezed past estimates, and affirmed that this company is at the beginning of a promising multi-year growth narrative.

But the valuation underlying PINS stock already prices in a bunch of that growth.Further near-to-medium term upside in PINS stock may ultimately be limited by an overheated valuation.

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