Cramer's Stop Trading: Pinterest

Key Concepts:

• Block (formerly Square): Potential for growth independent of S&P inclusion.
• Pinterest: Underrated platform for learning, crafts, and inspiration; potential for market capitalization increase.
• Growth Acceleration: Morgan Stanley's observation regarding Pinterest's underpriced growth potential.
• Safe Environment: Characterization of Pinterest as a relatively safe online space, especially for children.

Discussion of Block (Formerly Square):

The segment begins with a focus on finding companies with significant growth potential. Block, previously known as Square, is highlighted as a promising investment, even if it is not included in the S&P 500 index. The specific reasons for this optimism are not detailed in the provided transcript, but the implication is that Block's underlying business fundamentals and growth prospects are strong enough to drive value creation independently of index inclusion.

Analysis of Pinterest:

The discussion then shifts to Pinterest, with a strong endorsement of the CEO's performance. A key point is the anticipation that Pinterest's content will be incorporated by the "five big ones" (presumably referring to major technology companies involved in data scraping and AI training). This suggests Pinterest's data and content are valuable and relevant in the broader technology landscape.

Pinterest is described as an "underrated site" with a current market capitalization of $25 billion, suggesting a potential increase to $50 billion. This indicates a belief that the market is undervaluing Pinterest's current business and future prospects.

The argument for Pinterest's value centers around its utility as a platform for learning, crafts, and inspiration. Specific examples include trip planning, learning to paint, and finding special recipes. This highlights Pinterest's diverse content offering and its role as a resource for various user needs.

Morgan Stanley's Perspective:

Morgan Stanley's view on Pinterest is mentioned, emphasizing that the "growth acceleration is not being priced in." This reinforces the idea that Pinterest's stock price does not fully reflect its potential for future growth. The reference to a "relatively safe environment for kids" is also significant, suggesting that Pinterest has implemented measures to protect younger users, which could be a positive factor for its long-term viability and user engagement.

Conclusion:

The transcript presents a bullish outlook on both Block and Pinterest. Block is seen as a company with intrinsic growth potential regardless of S&P 500 inclusion. Pinterest is highlighted as an undervalued platform with significant growth potential, driven by its unique content offering, its relevance to major technology companies, and its relatively safe environment. The implicit call to action is for viewers to consider these companies as potential investment opportunities, with an emphasis on Pinterest's untapped potential.