February 8th- Pinterest


Option: Feb 19 Call, $90 Strike $1.41

Last Thursday, Pinterest reported a strong Q4 2020 earnings beat:

EPS: 43 cents vs 32 cents expected

Revenue: 706M vs 645M expected

Average Revenue per user: $1.57 vs. $1.44 expected

In January 2020, Pinterest was trading around $18 a share, now trading at $81, marking a 250%+ return in 2020. The pandemic increased demand for digital ads and Pinterest shrewdly had been investing in advertising tools, which helped them capitalize for online advertising demand. Impressively, international revenue more than doubled in Q4 from 2019, as companies viewed Pinterest as an advertising opportunity, because of their strong user base and work from home demand. The part of the earnings call which excited investors the most was their 2021 guidance-expecting revenue to grow in the low 70% range YoY. 

Overall, 2020 was breakout year for Pinterest and it is likely to continue through 2021.