Yes currently market, especially retail investors, are losing confidence on VG1. Because they like those invest heavily on PINS and high flying stocks. Yes I agree VG1 always react slowly, but they have close their Spotify and Apple position too early, they need to make sure, they won’t make that mistake again.
For the future of PINS, Yes the global lockdown is over, the active user growth is slower. But it still keep growth, especially its global market is still at early stage. As long as they can attract new user, they can attract more advertisement, this advertisement is more effective and more focus on target group. And the redirection of certain website is also valuable. E commerce in China is an example, it still have a lot potential. the earning is low because they spend a lot on global expansion, when this cost is stable, the earning will growth. More revenue because of more user, and lower or stable advertisement expense, we will see a big jump on profits. Pins are better then those already at the matured stage of global participation, when global lock down is life those at mature stage will see active member reduced, but those at early stage can see it has been offset by new global user flood in. When it is not as expected Luciano will certainly close that position, so the risk is low at current level.
The retail investor are losing confidence is the time that creat opportunities, Think about L1 and Regal, when L1 performance is not good retail investor think it is rubbish, regal was under investigation the share price drop suddenly from 2.7. When they ride market madness and use a large leverage, their share price are flying high. This is retail investor act, those act like that cannot make large money, the only creat opportunities for rational investors.
VG1 Price at posting:
$2.24 Sentiment: Buy Disclosure: Held
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