No longer satisfied with simply being the image pinboard company, Pinterest (NYSE: PINS) is making subtle moves in a bid to become something more.
That something may include becoming the TikTok for homeowners.
How is Pinterest going to do this?
Last night, the ‘good guy’ of social media announced that it had successfully acquired Vochi, a video creation and editing app focused on democratizing quality tools for creators, for an undisclosed fee.
It’s the kind of news that may have slipped past most people — but not this cool cat, who’s always got his finger on the pulse! And what’s more, it plays right into an interesting bull case for Pinterest’s long-term growth potential.
Like so many others, Apple’s iOS 14.5 privacy update has had a negative impact on Pinterest. With the vast majority of its revenue coming from advertising, it’s important for the company to diversify, which it has, via the introduction of e-commerce integrations and live events, etc. However, advertising remains its key growth driver, and video may be the way to grow further.
By integrating Vochi’s app into Pinterest, creators will now be encouraged to share their ideas in video format — whether that’s recipes, DIY craft projects, home décor ideas, beauty tutorials, fashion ideas, or anything else.
With 444 million monthly active users (MAUs), there is a lot of potential here to create a more millennial-focused video platform, as opposed to the largely comedic and Gen-Z-centric TikTok. And, while it’s not a like-for-like comparison, the potential is huge for Pinterest, which saw revenue soar to $633 million in Q3 — up 43% year-over-year.
So, while this news may not be the talk of Wall Street, Pinterest bulls would do well to take note of this exciting development and keep an eye on upcoming innovation.
Content Manager at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.