Pinterest...You Can Take A Quick Breather
Pinterest, Inc. provides a visual discovery engine that helps users to discover ideas for various projects and interests worldwide. Its platform allows users to discover ideas for daily activities, remodeling a house or training for a marathon, ongoing passions, and planning a wedding or a dream vacation.
Pinterest was founded in 2010 by Ben Silbermann, a former Google employee, and Evan Sharp, who was previously a designer at Facebook. Pinterest makes money by Pinterest sells targeted ads called “promoted pins” that appear at the top of users’ feeds and search results. Pinterest continues to fight for their lives because any company socially engaging into something is free game for Facebook.
Facebook has a history of just taking something from so other company and making it their own. It copied Tencent's WeChat Mini Programs with Messenger's integrated apps. Facebook Dating is a play on Match Group's Tinder. And when Snapchat comes out with something, Facebook is quick to steal it, an example would be when Facebook-owned Instagram integrated Snapchat-style stories into its app.
Pinterest doesn't directly compete with Facebook, since it mainly focuses on hobbies and interests instead of personal information and social engagement. But in March, February, Facebook launched Hobbi which was an app for collecting, organising, and sharing photos of projects you're working, so in essence it was designed to mimic Pinterest’s business model. But Hobbi lacked the discoverability, search, and recommendations features that Pinterest had. So it really never gained any traction.
Pinterest Inc. shares are up 5% in Wednesday trading after Facebook Inc. confirmed that it plans to shut down Hobbi, a rival app that let users track progress on creative hobbies like crafts and cooking. "We expect to have to shut down apps when they're not catching on, but we also hope to learn from these experiments so that we can build better, more interesting apps in the future," A Facebook spokesperson said of apps developed by Facebook's New Product Experimentation team.
Pinterest now can take a breath, but is has to be quick because although Facebook is out of the picture, Google just re-launched the Keen, which resembles Hobbi. I always wonder how Pinterest business model was sustainable and if the company just went public to cash out. However, what I’m realizing from my time on Hive and Leofinance is that the community equates to sustainability. As an investor though, I would never buy Pinterest and only would be interested in shorting the stock at the major resistance/support band at $28
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
