We not too long ago revealed a listing of Billionaire Paul Singer’s 10 Inventory Picks with Large Upside Potential. On this article, we’re going to check out the place Pinterest, Inc. (NYSE:PINS) stands in opposition to different inventory picks with enormous upside potential.
Paul Singer based Elliott Funding Administration in 1977 in New York. It is likely one of the oldest hedge funds beneath steady administration and can also be one of many largest activist funds on the planet. It’s the administration affiliate of American hedge funds Elliott Associates and Elliott Worldwide Restricted. Launched in 1994, Elliott Worldwide Restricted has constantly outperformed the S&P 500 index by ~5 share factors yearly since its inception, which is a observe document mirrored by Elliott Associates. Paul Singer earned a BS in psychology from the College of Rochester and a JD from Harvard Regulation Faculty. He then spent 4 years working in company legislation companies and the funding financial institution Donaldson, Lufkin & Jenrette earlier than founding Elliott Funding Administration. Elliott Administration has 38 shoppers and discretionary property beneath administration (AUM) of $97.37 billion, based on the Kind ADV dated 13 February 2025. The final reported 13F submitting for This fall 2024 included $16.66 billion in managed 13F securities and a high 10 holdings focus of 82.44%.
Singer has constructed a popularity on Wall Avenue for his aggressive ways that usually generate vital shareholder worth by exploiting weaknesses in varied asset courses. His preliminary method to investing was to focus on firms and even governments whereas buying extraordinarily distressed debt. In February 2025, Singer appeared on a Podcast titled ‘In Good Firm with Nicolai Tangen’, the place he additionally mentioned what he believes is the explanation behind unhealthy investments. Whereas unhealthy luck stays a related issue, he believes that these failures consequence from oversights and insufficient and/or incorrect hedging methods:
“Generally it’s unhealthy luck, however extra incessantly it’s (that) we missed one thing. We missed. Or the hedges weren’t, they weren’t the appropriate hedges. The monitoring error was rather more than we anticipated. Firstly of my profession, 1977 to love 1987, hedging was rather more easy, as a result of we had been lengthy a convertible bond and quick the inventory into which the convertible was convertible. In order that’s very simple. And monitoring error wasn’t actually an element. We’ve change into rather more subtle in hedging, in creating bespoke hedges for various sorts of trades. However even these don’t work out precisely, you already know, on a regular basis. However generally, you already know, the worst trades, and I don’t thoughts mentioning them, it’s a form of a type of remedy and a pedagogical train. The worst trades are the trades that you just misunderstand the chance. You place it into the improper class.”
To compile the listing of billionaire Paul Singer’s 10 inventory picks with enormous upside potential, we sifted via This fall 2024 13F filings of Elliott Administration from Insider Monkey. From these filings, we checked the upside potential from CNN for the highest 20 inventory picks and ranked the shares in ascending order of this upside potential. We have now additionally added Elliott Administration’s stake in every inventory in addition to the broader hedge fund sentiment for it.
Notice: All knowledge was sourced on Could 8.
Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we are able to outperform the market by imitating the highest inventory picks of the most effective hedge funds. Our quarterly e-newsletter’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Could 2014, beating its benchmark by 218 share factors (see extra particulars right here).
Pinterest Inc. (NYSE:PINS): Amongst Billionaire Paul Singer’s Inventory Picks with Large Upside Potential
A younger, trendy girl utilizing her smartphone to search out inspiration for her newest DIY challenge.
Elliott Administration’s Stake: $812 million
Variety of Hedge Fund Holders: 73
Common Upside Potential as of Could 8: 44.48%
Pinterest, Inc. (NYSE:PINS) is a visible search & discovery platform that enables folks to search out concepts, resembling recipes, dwelling, and magnificence inspiration. It additionally permits them to look, save, and store the concepts. The corporate provides varied promoting merchandise to assist advertisers meet customers, and an ad public sale that enables advertisers to serve advertisements to customers at related moments to optimize enterprise outcomes.
In This fall 2024, Pinterest achieved its first $1 billion income quarter with 18% income progress, which was partly pushed by a document variety of clicks through the vacation season. The platform’s weekly energetic to month-to-month energetic consumer ratio additionally reached an all-time excessive of 62% in 2024. This success was additional fueled by enhancements within the firm’s promoting platform.
Clicks to advertisers grew over 90% in This fall, even after lapping the preliminary launch of direct hyperlinks from the earlier yr. Pinterest, Inc. (NYSE:PINS) focuses on actionability, relevance, and curation, whereas distinguishing itself as a optimistic place on-line. For 2025, administration plans to make use of AI and its distinctive first-party sign to drive extra personalised experiences.
Renaissance Massive Cap Development Technique acknowledged the next concerning Pinterest, Inc. (NYSE:PINS) in its This fall 2024 investor letter:
“We made a number of modifications to the portfolio within the fourth quarter. Most not too long ago, we added a brand new place within the Communication Providers sector in December with Pinterest, Inc. (NYSE:PINS), a number one visible search and discovery platform with a singular curation operate that permits customers to search out and show new concepts and creations that concentrate on pursuits resembling vogue and residential décor amongst different client items. Since 2022, a brand new administration crew has remodeled Pinterest right into a procuring platform, offering extra worth and capabilities to advertisers includ ing direct reference to customers, leading to greater income. As well as, the corporate was an early adopter of AI to extend personalization, promoting relevance choices, and automatic processes to extend ease-of-use for smaller advertisers. Within the close to time period, we count on Pinterest to see monetization enhancements with upside to Common Income Per Consumer (ARPU) and traction in new classes and worldwide markets.”
Total, PINS ranks fifth on our listing of billionaire Paul Singer’s inventory picks with enormous upside potential. Whereas we acknowledge the potential of PINS as an funding, our conviction lies within the perception that AI shares maintain nice promise for delivering excessive returns and doing so inside a shorter timeframe. There may be an AI inventory that went up because the starting of 2025, whereas in style AI shares misplaced round 25%. In case you are searching for an AI inventory that’s extra promising than PINS however that trades at lower than 5 occasions its earnings, take a look at our report concerning the least expensive AI inventory.
READ NEXT: 20 Finest AI Shares To Purchase Now and 30 Finest Shares to Purchase Now In accordance with Billionaires.
Disclosure: None. This text is initially revealed at Insider Monkey.
