PINS is an excellent buy; fair value $39 vs price $22 implies >78% upside, though facing Meta and macro headwinds.

The next stock I'll highlight as a top stock to buy is Pinterest where I calculated a fair value of $39 and the market price is $22. Given that difference, I've calculated an upside here of over 78% for Pinterest stock.

A couple of bullish factors is that the company is one of a few social media companies that's adding users from North America. Users from North America are the most lucrative with the highest average revenue per user.

Additionally, Pinterest is improving its recommendation systems which is increasing engagement from existing users.

Now, a couple of downsides here is spending by the industry leader which I mentioned earlier meta platforms is creating a bigger gap between the leader and everyone else. That's a headwind for Pinterest.

And secondly, macroeconomic trends are hurting Pinterest more significantly than other social media platforms because it's more correlated to macroeconomic performance. The war in Iran, the trade wars, increasing trade barriers, higher interest rates, increasing inflation have all diminished the consumer spending power in the United States and around the world. And that's been a negative for Pinterest.

Still, despite those headwinds, I think Pinterest is an excellent buying opportunity. I own Pinterest stock in my portfolio. I'm not interested in adding more. In fact, I'll probably sell one/ird of my position sometime this year.

I bought those shares at about $35 and there's a significant loss in there. And so, I want to sell onethird of my position to harvest those losses for tax purposes. I will be keeping the other two/3s in my portfolio.