This is one of the lesser-known names that also has huge potential. Pinterest Inc. (NYSE: PINS) operates globally as a visual discovery engine that allows people to find ideas, such as recipes and home and style inspiration, and provides video, product and idea Pins, as well as offers organizing and planning tools.
The company shows organic recommendations and advertising engine based on Pinners’ tastes and preferences, and it enables Pinners with shoppable product Pins, which include price, color and size that redirect to retailer websites.
With billions of Pins on Pinterest, consumers always find ideas to spark inspiration. When people discover Pins they love, they can save them to boards to keep their ideas organized and easy to find. Individuals can also create Pins to share their ideas with other people on Pinterest.
Pinterest stock has a $32 target price at Goldman Sachs. The $28.78 consensus target is lower than Monday’s close at $29.15.
Yelp
This is another top internet play from the Goldman Sachs team. Yelp Inc. (NYSE: YELP) operates a platform that connects consumers with local businesses globally. The company’s platform covers various local business categories, including restaurants, shopping, beauty and fitness, health and other categories, as well as home, local, auto, professional, pets, events, real estate and financial services.
Yelp provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location ad products, as well as enables businesses to deliver targeted search advertising to local audiences. It also offers business listing page products.
The company offers other services, including Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife and certain other venues, which include online reservations, a waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as through hostless kiosks, and seating and server rotation management tools. Its Yelp Knowledge program offers business owners local analytics and insights through access to its historical data and other proprietary content. Yelp Fusion offers free and paid access to content and data for consumer-facing enterprise use through publicly available APIs.
In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force, indirectly through partners and online through its website and business app, as well as non-advertising partner arrangements. It has a partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery.
The $47 Goldman Sachs target price is well above the consensus figure of $34.63. However, Yelp stock closed 10% higher on Monday at $42.02, likely in part to the solid commentary in the Goldman Sachs report.
Of course, corporate advertising dollars rise up and down with the economy. While all is seemingly well now, there could be some storm clouds in the distance, as we have yet to see the full effect of the 500-basis-point increase in interest rates. With that caveat in place, advertising on the top internet platforms should continue to grow for years to come.
Originally published at 24/7 Wall St.
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