Earlier in the year, we discussed how there are some investors who may shy away from investing in Twitter because of a lack of “real” information in their IPO. However, investors are desperately seeking out opportunities to invest in Pinterest, which has made no money at all!

Why is this?

One possible reason why investors like Pinterest so much, is that it provides primary research for a business, essentially without the business having to conduct any research of its own! On Pinterest, users “pin” items that they like to they’re board, and from there, business can directly see which product users like, and which ones they don’t like. This would be a great way to see which products consumers are interested in buying, and would also help in creating an awareness about the business in question. Of course, along with any online site that basically sells your information to businesses, comes the sacrifice of privacy. In this case however, I think that it would be benefitting both the consumer and the business. From the business perspective, they are able to clearly see what products of theirs are liked by users from certain demographics, and for consumers, they are able to reach a wide array of products that they may not have otherwise known of.

Works Cited

Brustein, Joshua. “Why Investors Love Pinterest so Much.” BloombergBusinessweekTechnology. Bloomberg L.P., 24 Oct. 2013. Web. 24 Oct. 2013.