Pinterest: Valuation Won't Matter Until SBC Is Addressed (PINS)

Company Performance - Pinterest, Inc. (PINS) reported solid results in the third quarter, with revenue beating expectations, although the growth was described as soft and guidance was disappointing [1] - The company is facing pressure on its stock due to decelerating growth and weak margin gains, despite having a reasonably attractive valuation [1] Investment Insights - Narweena, an asset manager, focuses on identifying market dislocations resulting from a poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] - The research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] - The aging population, low population growth, and stagnating productivity growth are expected to create a different set of investment opportunities compared to the past, with some industries facing stagnation or secular decline, potentially improving business performance due to decreased competition [1] - Conversely, other businesses may encounter rising costs and diseconomies of scale, while economies are increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1]