Before you buy Pinterest stock, decide if it's the right investment for you.
Here's how to evaluate Pinterest and buy stock in the company.
We do not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities
The idea-sharing platform Pinterest was one of the buzziest initial public offerings last year: The company went public in April 2019, which means investors can buy Pinterest stock under the ticker symbol PINS.
Here's what to consider before you buy Pinterest stock.
Know Pinterest, the company
Whether or not you use Pinterest, as a potential investor it’s important to understand how the company makes money, its prospects for growth, and other key financial data.
You can learn a lot about Pinterest from its S-1 filing, the form companies file with the Securities and Exchange Commission before going public.
Know your portfolio
If you decide that Pinterest is a strong prospect for your investment dollars, it’s time to make sure the company’s shares suit your overall portfolio.
If this is money you’ll need for retirement or another important goal, or if you're not so comfortable with the risk of hitching yourself to one company, consider investing in index mutual funds and exchange-traded funds.
You’re generally buying shares of a slew of companies, and that’s a great path to a diversified and less volatile portfolio.
Consider your budget
A popular rule is to avoid investing any money in the stock market that you’re going to need in the five years.
Investing routinely in shares of companies you believe in — an approach called dollar-cost averaging — is a popular way to ensure that you don't inadvertently buy too many shares of an investment when its price is near a high.
Remember the tenet of not investing money you might need in the five years.
You shouldn't count on an upward trend continuing with Pinterest or any stock if you're hoping to use that money for something else in the near future.
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