Pinterest is a social media platform that many investors refer to. This isn't what the company says it is. To get to the help center, go to the website. You will see that it saysPinterest is a visual discovery engine.

Users of the platform simply browse images on the platform to find what they are looking for. They're exposed to advertisements while scrolling. It wasn't called a visual discovery engine in the latest press release. This is what it's called now.

Pinterest's little acquisition is a big deal

The Yes was founded by former Stitch Fix COO Julie Bornstein. The idea is that users take a quiz and the platform learns about your style over time.

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The Yes raised $30 million in a Series A funding round, but the company's valuation was not revealed at the time. The platform was still in the idea phase when The Yes raised money. It was launched to the public in May 2020. It was live for about 2 years.

At the end of the first quarter of the year, there were over two billion dollars in cash, cash equivalents, and securities. Considering how new The Yes is, it's likely thatPinterest didn't use much of its resources to purchase it. I don't understand why I am making a big deal about it if it is a small acquisition.

The acquisition of The Yes is consequential because of the statement in the press release. Visual discovery was subservient to being a shopping platform. Management seems to have shifted its thoughts about the business. That could have consequences for shareholders.

Is Pinterest the ideal e-commerce platform?

Pinboard is built differently. People often look at pins on pins because they're looking for something. They might be looking for something they want to buy. When they get an ad, they are less likely to be annoyed and more likely to get a good return on their investment.

The platform's monetization has increased due to better-educated advertisers. The company generated just $0.58 in revenue per active user in the first quarter of the year. In the first quarter of the year, it achieved an impressive 129% four-year increase in global average revenue per user. It's worth a lot of real estate.

The acquisition of The Yes is emphasizing its e- commerce potential.

It's possible that pinsy is trying to improve its algorithm to better serve advertisers. The Yes platform is closing it's doors. The Yes's technology is used by its employees to move over toPinterest. This appears to be a simple move to improve the technology and provide more value for its customers.

I think thatPinterest could be cooking up a different type of investment. Management's wording choices suggest an evolving emphasis, not simply a better way of doing the same business it's always done.

There is a chance that the platform could become a meta- shopping platform. Travelers can browse hotels, find the best deal, and book in one portal if they use online portals. That could be possible, but only for physical items. Prior to the acquisition of The Yes, the company was already experimenting with something similar. It might be possible to charge a fee for completed sales.

I'm not sure if that's the case. I don't think I'm overstating the importance of the management of the site. The wording of official press releases isn't off the cuff. I haven't seen the analyst community acknowledge that the company emphasized the evolution of The Yes into a shopping platform after buying it.

This is something that should be watched by shareholders. Time will tell if the changes to the business model are good or bad.

Jon Quast has positions in Pinterest. The Motley Fool has positions in and recommends Pinterest and Stitch Fix. The Motley Fool has a disclosure policy. score=27.55>

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