In the recent wake of coronavirus, one of the things that have taken the biggest hit is the economy. The stock market is plummeting, and the share prices are plunging rapidly. With the world currently at a standstill and the economic transactions halting without any near future recuperation date, it is becoming quite problematic for the big companies as well. One of the very things that people tend to do when the stock market drops is bought shares at lower prices and wait for the stock prices to rise and then sell. This is the basis of the investor mindset. Well, this can be prived to vet re for other companies, but not for Pinterest. According to the pins stock news at , the chances of it succeeding on the stock may not be possible.

Problems piled up before coronavirus

Well, the companies here can cope with the covid-19 crisis and can eventually get back on track. But the same cannot be said for Pinterest. Pinterest’s problems did not start with coronavirus, but much before that. Revenues have been hit since 2018, as the trends say that Pinterest si slowing down rapidly. Also, the two main industries that feed the Pinterest are retail and travel, but in the wake of the global economic crisis, they are at a loss too. This is affecting the overall Pinterest position on the chart. All this is affecting the balance sheet and also the overall operating costs of the company, which is pushing towards long term losses.

Risk reward balancing

Yes, Pinterest is not completely a bad case. It has many stronger and better points that can work for them, even in this global crisis. They have a good combative advantage over others in the social media market as strong niche holders, and they have a good business model. Also, they can give better advertising positions been in work from home situations utilizing people’s spare time all the while utilizing the advertising for their benefits. 

Is it safe to invest?

However, the question is still about the risk and return value of the company. In the last few years, it was seen in pins stock news or other stock news like Nysearca efa at that Pinterest can earn way better in their revenues of having an operating income of around $150 million before tax, with a margin of 10%. Though the interest is capable of giving out better prices and bear good operating income as compared to many market competitors, it is still risky when it comes to investing rewards. Looking at the bigger picture, the risk outweighs the rewards at any time.