If you have heard the term "pin it", then you will know about the online bulletin-board platform called Pinterest (NYSE: PINS). The company is clearly growing in popularity with international and domestic growth figures continuing to deliver. The company boasts a very specific user base with over 70% of its members female. This coupled with the fact that Pinterest is used by many to plan big life events such as weddings, pregnancies, or home renovations, all times of big expenditure in someone's life, makes it a very enticing platform for advertisers. So, should you buy Pinterest stock? 

Read more from MyWallSt:

• Is Chegg stock a good buy?
• Should I buy Plug Power?
• Is Virgin Galactic a good investment?

Here are three reasons why Pinterest is worth investing in:

1. Increased Earnings

The company's revenue soared by 46% in the quarter compared to the same time the year prior. In addition, adjusted earnings per share reached 12 cents for the fourth quarter, up from analysts' consensus of 8 cents. The outlook for the coming year is also beyond what experts predicted after the company said its revenue increased to $1.52 billion, compared to estimates of $1.5 billion. 

These latest results and the company's guidance are an indication that the recent adjustments to the app are paying off. Last quarter, Pinterest revealed it redesigned the app to make it easier for users to discover new ideas.

2. More Users Are Joining The Platform

Pinterest is also focusing on strengthening its shopping experience for its users and speeding up the performance of the app. 

On its latest earnings call, Pinterest reported that its global monthly active users jumped by 26% year on year to 335 million. The platform's International Monthly Active Users (MAUs) increased by 35% to 247 million and in the United States, users climbed by 8% to 88 million. Annual revenue per year (ARPU) surpassed $1 billion for the first time last year as it honed in on product improvements and shopping experiences. This is great news for the company which historically has low ARPU for its international users.

Pinterest is also focusing on expanding its presence in Europe, adding six new markets in 2019, including the likes of Germany and Italy. In addition, CEO Ben Silbermann mentioned that in 2020 the company would be focusing on delivering relevant content, ads and shopping experiences.

3. Not Your Typical Social Media Platform

These days most people are connected to social media, dominated by the likes of Facebook (NASDAQ: FB), Snapchat (NYSE:SNAP), and Twitter (NYSE: TWTR). It would be easy to dismiss Pinterest as competition, but the company isn't a copycat of the other social media giants as it encourages users to share "pins" with each other or save the ones they like for themselves.

Pinterest refers to itself as a "social discovery engine" which leads to an important function of the platform -- a search engine. The majority of Pinterest's users take advantage of being able to search for various shopping items, trends, and recipes. This is a huge invitation to businesses that are trying to reach a specific audience through marketing.

It's, therefore, no surprise that Pinterest generates the majority of its revenue by selling ads. The company has also said it will be launching its Verified Merchant Program, so pinners will know where they are buying from merchants that meet Pinterest's quality guidelines.

So, should I buy Pinterest stock?

There is no denying the tough barriers to entry surrounding the advertising industry. Heavy hitters like Google (NASDAQ:GOOG), Facebook and Amazon (NASDAQ:AMZN) are currently dominating the digital ad space, however, with the uniqueness of the company's platform, there is no reason  Pinterest won't be able to survive against these tough competitors. With strong financials, promising growth figures, and a more bespoke advertising opportunity, Pinterest stock has all the makings of a long-term buy and hold. 

Quickfire Round

• When did Pinterest go public? It went public on the 18th of April 2019, initially priced at $19 a share.
• How does Pinterest make money? It makes money through advertising. Ads, or promoted pins, are incorporated into the platform to look very similar to pins created by users.
• How much is Pinterest worth? The company currently has a market cap of around $12 billion.
• Is Pinterest profitable? The social media company is not profitable, it made a net loss of $1.36 billion in 2019

MyWallSt operates a full disclosure policy. MyWallSt staff currently hold no positions in Pinterest. Read our full disclosure policy here. 

Written by Alsha Coppolina.