Social media stocks have suffered over the past few months as money rotated out of growth stocks and pandemic favorites. Pinterest (NYSE:PINS) stock is down 30% year to date and 67% in the past nine months. Yet, in the past two weeks, PINS stock has gained 14% to trade around $25.50. 

The last time I wrote about PINS stock was in mid-February when shares were trading at about the same level as today. I said at the time that PINS stock was a “buy.” Not much has changed since then.

While investors may be frustrated by the dip in PINS stock, a rebound is close.

There’s More to Pinterest Than MAUs

Pinterest announced strong fourth-quarter 2021 results on Feb. 3. Some investors and commentators chose to focus on the decline in monthly active users (MAUs), which fell 6% on a year-over-year basis globally and 12% YOY in the United States. However, I would caution you not to read too deeply into that stat. 

Despite easing pandemic restrictions, Pinterest has a solid business that is consistently growing. In the fourth quarter, the company saw revenue increase 20% over the same quarter a year ago to $847 million. Furthermore, while the number of MAUs declined, global average revenue per user rose 23% year over year in Q4 to $1.93 and 25% in the United States to $7.43.

The international market represents a big growth opportunity for Pinterest. While U.S. revenue was up 11% in the fourth quarter over a year ago, international revenue surged 61%.

Pinterest’s Ad Business Is Booming

Pinterest makes money through advertising and the company has doubled down on efforts to increase ad sales. For example, it launched a video-first feature called “Idea Pins” last year and recently upgraded it to allow videos to be exported to other platforms. 

Management cited strong advertising revenue as a driver of its 20% Q4 revenue increase. As Reuters reported, online retailers “splurged” on ads on Pinterest ahead of the holiday season.

Although many companies are getting hit by rising costs and supply chain issues, expect them to continue to spend on online advertising. And expect Pinterest, which is an ideal destination that allows users to look for products without specifically looking for a brand, to continue to capture those dollars. 

The Bottom Line on PINS Stock

Pinterest is no longer a pandemic darling, but it is a profitable and growing company. Investors should look beyond declining monthly average users and consider the bigger picture. In addition to a solid user base and attractive platform, the international market presents a huge opportunity for the company. And Pinterest has positive cash flow and little debt, which will give it the necessary leverage in the coming months.

Do not expect PINS stock to surge overnight. It will take some time for shares to rebound. Yet, PINS stock is one to own for the long term, and the current dip presents a good chance to make your move. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis