Often ignored, Pinterest (PINS) reminded markets why it is a good internet stock to own. Shares gained 19% to close at $40.00 on Feb. 7. The company reported Q4 revenue of $1.15 billion (+17.2% Y/Y).
In Q1, Pinterest expects revenue of up to $852 million, or growth of 13%-15% Y/Y. PINS stock is a buy if the company sustains its business growth momentum in 2025.
The company mentioned artificial intelligence several times. Despite the buzzword overuse, AI should help Pinterest’s platform. It will funnel more users, driving purchasing activity. This would attract more advertisers, pushing revenue higher.
Cloudflare (NET) gained 17.76% to close at a new high. Q4 revenue of $459.9 million beat expectations by around $7 million. CEO Matthew Prince said that the company now has 173 customers who spend more than $1 million.
In the buy now, pay later market, Affirm Holdings (AFRM) gained 21.81% to close at $75.22. The business of transaction-based underwriting is attractive. By underwriting transactions individually, unlike credit card issuers who need revolving credit, Affirm lowers its system credit risk.
Affirm will continue to channel its promotional dollars into reduced APRs or zero APRs. This drives consumers to spend.
In the current quarter, Affirm expects revenue of $755 – $785 million. For the year, it should report revenue of up to $3.19 billion.
