Notably, the FAANG stocks are all beating the market this year despite the COVID-19 turmoil. Amazon stock has gained more than 56% this year, while the S&P 500 Index is down more than 3.0%. Netflix and Apple stocks have risen about 50% and 25% this year. Meanwhile, Facebook and Alphabet stocks are up 14% and 10% for the year.
Jim Cramer has other tech favorites outside the FAANG group. Pinterest (NYSE:PINS) is one of his favorite tech stocks. The social media company is known for its namesake digital pin board, which has 367 million users. Pinterest’s revenue jumped 35% year-over-year to $272 million in the first quarter of 2020.
In comparison, there was revenue growth of 18% at Facebook, 3.0% at Twitter (NYSE:TWTR), and 44% at Snapchat parent Snap (NYSE:SNAP). Like all of the other social media companies, Pinterest derives most of its revenue from advertising. Pinterest has been working on a new advertising revenue-sharing model to try to woo more video publishers to its platform.
Pinterest stock since Jim Cramer’s recommendation
On June 16, CNBC Mad Money host Jim Cramer recommended buying Pinterest stock. Looking back, the stock has risen about 10% since Jim Cramer’s “buy” recommendation.
Facebook rolls back Hobbi, victory for Pinterest
Pinterest has many competitors including Facebook. In February, Facebook turned up the competitive heat on Pinterest by launching a standalone rival app called “Hobbi.”
Notably, Pinterest stock fell nearly 10% in the week that Facebook’s Pinterest-inspired Hobbi app debuted. Investors feared that Hobbi might slow down Pinterest’s subscriber growth by offering an alternative experience. However, Facebook decided to shutdown Hobbi, which is a victory for Pinterest. Facebook also plans to shutdown Lasso, which is a short video app. While Facebook aimed at Pinterest with Hobbi, it aimed at TikTok with Lasso.
Jim Cramer’s “buy” call on Pinterest stock came at a time when Pinterest still faced competition from Hobbi. Shutting down Hobbi will reduce the competition for Pinterest. As a result, the stock should look even more attractive. Pinterest stock has gained 30% this year and 76% over the past three months. Analysts’ target prices show that the stock could increase 17% more from the current level.