The social media company has pulled back in recent weeks, but the growth opportunity looks as promising as ever.
The Zacks Analyst Blog Highlights: Amcor, JM Smucker and Pinterest
Pinterest, Bank of America, Norwegian Cruise, Royal Caribbean and Carnival as Zacks Bull and Bear of the Day
The interest-based social network could face slowing growth, tougher competition, and wider losses in the near future.
If the company's lack of profitability scares you, take a second look at the cash flow statement -- this company's about to start rolling in the dough.
Several consumer internet companies have reported seeing major ad sales pressures in March but also indicated that business hasn't worsened in April.
Although we've rebounded quite a bit off of the March lows, the U.S. economy and labor market remain shells of where they were just three months ago, with job losses surpassing 30 million and second-quarter gross domestic product expected to come in at a year-on-year decline of more than 30%, according to many Wall Street estimates. While putting a bear market into the rearview mirror isn't going to happen overnight, this data conclusively shows that buying stocks during major stock market declines is always a smart move. With most brokerages removing the commissions associated with stock purchases and sales on major U.S. exchanges, the barriers to invest in the market have been torn down.
The Trade Desk (NASDAQ:TTD) is one of the best growth stocks out there -- and I'm not trying to be hyperbolic. Yet TTD stock plunged from $320 in February to sub-$150 in March, down 58%.Source: BrightSpace / Shutterstock.com I don't think that The Trade Desk deserved such a plunge and I'll highlight why in a minute. But equally, I don't know that it deserves to rally 140% from its March low to a new all-time high in May.Again, this is a fabulous company with incredible growth. But that kind of move amid this kind of uncertainty has me thinking twice. But first, the good.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why We Like TTD StockWhat does The Trade Desk do?The company "operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns." This spans mobile, social, desktop, connected TV and more, and essentially acts as an A.I.-based advertising platform. * 20 Stocks to Buy If You're Still Betting on America to Thrive When we think of advertising, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Facebook (NASDAQ:FB) may first come to mind. The Trade Desk works in a different way. It acts as a tool to advertisers, rather than the distribution platform (i.e. a search engine or social media site).It's worth pointing out that TTD helps place ads in all sorts of mediums, including in search engines and social media sites. But it must be understood that this is a tool for advertisers and it's one that's generating a ton of growth.Even with the impact of the novel coronavirus, The Trade Desk is still forecast to churn out 16.6% revenue growth this year. This is a company that generated about $660 million in sales in 2019 and is forecast to hit about $1 billion in revenue in 2021.But one of my favorite things about TTD stock is that it's profitable. Last year, the company generated earnings of $3.69 per share. That figure is forecast to fall to $3.09 per share this year -- as Covid-19 dramatically shifts the advertising landscape -- before rebounding to more than $4 per share in profit in 2021.On a price-to-earnings basis, of course TTD stock is expensive. But the fact that it can grow so aggressively and do so profitably at the same time is wildly attractive. Lastly, TTD operates in China too, a country that most U.S. tech titans are banned in. Yes, that includes Google and Facebook. A Dose of Reality Click to EnlargeWhen The Trade Desk reported earnings, it beat on top- and bottom-line estimates. However, it did not provide Q2 or full-year guidance. Combine that uncertainty with what we're seeing at Pinterest (NYSE:PINS), Facebook and Google, and it's clear that digital advertising is taking a hit in 2020.Optimists will say that hit is temporary -- and perhaps it is. We already know that ad spend fell off a cliff in March, but looked to be bottoming in April. If that's the case, the impact shouldn't be so bad and investors will likely look to the future rather than focus on the present.That's all fine, assuming ad sales actually do bottom in April before rebounding notably through the end of the year. The problem is, we don't know that it will.Los Angeles is talking about extending its stay-at-home orders through July. Companies are burdened by extra expenses and reopening costs. Those funds have to come from somewhere and marketing dollars could be hit. A recent report highlights the likely drop in TV ad spend now that certain contract options allow for cancellations.I'm not saying this to be a doom-and-gloomer. But rather, question why TTD stock just hit all-time highs and why Facebook came within a few percent of doing so when, even under optimistic assumptions, the digital ad market will suffer in 2020. The Bottom LineI must reiterate that you should not interpret the last section as doom-and-gloom. Instead, it comes from a more cautious observation. Remember, I have been bullish on stocks and in particular, on tech.In normal times, stocks that have market-beating growth are valued at a premium. However, I recently made the case that if these companies have strong growth in 2020 despite the impact of Covid-19, they are certainly worth a premium. In that light, and particularly after clarity from other digital ad companies, I don't believe TTD deserved to fall 58%.That said, this year is going to be worse than previously expected and we don't know how Q3, Q4 and 2021 will shape up. Under that circumstance, it doesn't feel reasonable to bid TTD to new all-time highs. Not in this environment.In the long run, TTD stock is a winner, but in the short term, there is risk. I like this one a dip, but not at over $300.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post TTD Stock Dipped Once, But Donat Miss Your Next Opportunity appeared first on InvestorPlace.
Both Facebook (NASDAQ: FB) and Pinterest (NYSE: PINS) represent communication stocks at two ends of the social media industry. One company dominates more generalized social media. Facebook and Pinterest should see a recovery in ad revenue as people and businesses resume activity.
Pinterest Inc. (NYSE: PINS) on Thursday announced that Shopify Inc. (NYSE: SHOP) merchants can now sell directly on its platform through "shoppable Product Pins."The Shopify merchants will be able to upload their catalogs on Pinterest using a new app, where the latter's 335 million users can discover the products and make direct purchases from the merchant website, the two companies said in a joint statement.The feature is currently only available in the United States and Canada. It will go live for merchants in countries where Pinterest ads are available, including the European Union, Australia, and New Zealand, in coming weeks, the companies noted.The number of Pinterest users who engaged with shoppable Product Pins has increased 44% year-on-year in the first quarter, the statement read, and total traffic to retailers increased 230%."Merchants are adapting to new realities and looking ahead to the future of retail, which is why we're focused on making both our ads and organic features available and impactful to businesses of all sizes," Pinterest Senior Vice President of Technology Jeremy King said in a statement.Shopify beat analyst estimates for its first-quarter earnings this year, and Pinterest reported mixed-numbers.Price Action Pinterest closed 5.53% higher at $18.70 per share on Thursday and added another 1% in the after-hours session. Shopify closed 1.5% lower at $722.76 per share and dropped another 0.4% in the after-hours. See more from Benzinga * Microsoft, Facebook, Twitter Partner With WHO To Launch Coronavirus Hackathon(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
RiverPark Advisors an independently-owned investment firm, recently published its first-quarter RiverPark Long/Short Opportunity Fund commentary. During the first quarter of 2020, the RiverPark Long/Short Opportunity Fund returned 9.48% (institutional shares), compared to the total return of -19.60% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks which helped them beat […]
Pinterest gets rocked after reporting earnings. However, the stock is coming off its lows. Here's how the charts look after the bounce.
I finally got out of a notorious Chinese stock, but I was a net buyer for the week after buying into three other stocks.
Microsoft's Edge browser is getting a bunch of new features soon. One new feature for more casual users is an integration with Pinterest and Edge's collections feature. There is an obvious overlap here, since both Pinterest and collections are about allowing people to save links to the research they've done online about virtually any topic.
If you dismiss a company without doing the research, you can miss out on interesting businesses like these.
Bull of the Day: Pinterest (PINS)
Is (PINS) Outperforming Other Computer and Technology Stocks This Year?
RiverPark Advisors, LLC an independently-owned investment firm, recently published its first-quarter RiverPark Long/Short Opportunity Fund commentary – a copy of which can be downloaded here. During the first quarter of 2020, the RiverPark Long/Short Opportunity Fund returned 9.48% (institutional shares), compared to the total return of -19.60% by the S&P 500 Index. In the said letter, RiverPark […]
Curations by Elaine Welteroth, Blair Eadie and interior designer Sarah Sherman Samuel are featured in Pinterest's new Shopping Spotlights tool.
Following an 11-year bull market, the past three months have been highly unnerving for investors. Since the broad-based S&P 500 hit an all-time closing high exactly three months ago, on Feb. 19, 2020, we've witnessed the highest volatility reading in the CBOE Volatility Index's history, and saw the S&P 500 decline 34% in just 33 calendar days. This was the fastest drop into bear market territory (as well as the quickest 30% decline) ever recorded.