|Bid||36.92 x 800|
|Ask||0.00 x 900|
|Day's Range||36.54 - 37.44|
|52 Week Range||22.67 - 41.69|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 6, 2017 - Nov 10, 2017|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||42.70|
PRESIDENT, CEO & CO-CHAIRMAN of Chegg Inc (NYSE:CHGG) Daniel Rosensweig sold 165,000 shares of CHGG on 06/20/2019 at an average price of $39.86 a share.
The startup’s early success suggests just how crazy the Bay Area’s pricey housing market has become, with innovative ideas such as this one gaining traction — and $30 million in equity financing.
When it comes to stocks, it's all about expectations. In theory, the present value of a stock is equal to the company's earnings power, discounted back at an appropriate rate. In practice, this basically means that the more optimistic investors are about the future growth of a company, the higher that stock will go, and vice versa.One feature of the expectations game in stocks is that expectations end up being correlated with potential return. The bigger expectations are for a company, the more those positive expectations get priced into the stock, so when good news happens, everyone was ready for it, and the stock consequently fails to rally in a big way.But, when the expectations are low on a company, good news isn't priced in. Thus, when good news converges on a depressed stock, that's when you get the big 20%-plus, 30%-plus, and bigger rallies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, the expectations game in stocks means that underdog stocks -- or dark horse stocks, as I like to call them -- are often the biggest winners in the market. * 7 Stocks to Buy As They Hit 52-Week Lows Which dark horse stocks are running higher in 2019? Let's take a closer look. Snap (SNAP)YTD Return: 150%Heading into 2019, Wall Street was very pessimistic on shares of Snap (NYSE:SNAP). The social media platform had seen its user base shrink in the back half of 2018, which coincided with a rapid slowdown in revenue growth. At the same time, the company was still reporting wide losses, and competition from bigger digital ad players was only getting more fierce.But, in 2019, the tide has started to turn for this dark horse stock. User growth has come back into the picture. Revenue growth has stabilized. Margins have improved. Competition has become less fierce. Losses have narrowed. In other words, every late 2018 headwind, has turned into an early 2019 tailwind, and SNAP stock has consequently more than doubled this year.Can the rally continue? I'm hesitant to say yes here. Snap stock has come very far, very fast, and the valuation is now very big. User growth, although positive, is still tepid. Revenue growth isn't all that impressive. Margins are still a concern. Competition hasn't gone away entirely. Broadly, although things are improving here, they still aren't great, and that will ultimately keep Snap stock from heading much higher. Roku (ROKU)Source: Shutterstock YTD Return: 230%In late 2018, Wall Street seemed to forget the secular growth story which supported streaming platform Roku (NASDAQ:ROKU). Investors became overly concerned about competition derailing this company's growth trajectory, and a slowdown in the global economy similarly derailing the OTT video trend. ROKU stock was consequently hammered.Those concerns were overstated. The economy hasn't slowed much, and the OTT video trend has only gained momentum in 2019. Further, competition still hasn't caught up to Roku, and the company has continued to dominate the streaming device market this year. As it has, investors have jumped back on the Roku bandwagon, and in a hurry. The stock has more than tripled in 2019. * 7 A-Rated Stocks to Buy Under $10 Can the rally continue? I think so. Sure, Roku stock needs to take a short term breather because, after all, stocks don't go up in straight lines forever -- even dark horse stocks that suddenly pull ahead. But, after that breather, the rally should continue. This company is increasingly turning into the cable box of the OTT video world, and that will translate into billions of dollars in advertising and subscription sharing revenue at scale. Those revenues are high margin, so we are talking potentially hundreds of millions of dollars in profit here. ROKU stock just isn't priced for that, so it will continue to move higher. Stitch Fix (SFIX)Source: Stitch FixYTD Return: 55%Wall Street was quick to fall in love with online personal styling service Stitch Fix (NASDAQ:SFIX). But just as quickly as investors fell in love with the stock, they fell out of love with it. In just over a year after its IPO, SFIX stock went from $15, to $50, back to $15, as investors backed away from the stock in late 2018 as growth dramatically slowed.But the growth slowdown was temporary, due to one-time changes and purposefully lower marketing spend. Those one-offs have been phased out, and marketing spend has re-accelerated. Consequently, growth in 2019 has re-accelerated, too. As it has, SFIX stock has come roaring back. Shares are up more than 50% in 2019.Can the rally continue? I'd say yes. Stitch Fix is changing the game in retail to a curated, on-demand model. We've seen these shifts before. Netflix (NASDAQ:NFLX) changed the content game by curating content and making it on-demand. Chegg (NASDAQ:CHGG) changed the education game by curating textbooks and making learning an on-demand experience. The retail pivot will play out in a similar manner. Curated, on-demand shopping will gain share and traction. As it does, Stitch Fix's growth trajectory will remain favorable, and SFIX stock will stay in rally mode. Advanced Micro Devices (AMD)Source: Shutterstock YTD Return: 70%The best performing stock in the S&P 500 last year was Advanced Micro Devices (NASDAQ:AMD), and the out-performance was all because the relatively small CPU and GPU maker was stealing market share from the far bigger Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA). Investors were concerned that this market share expansion would not persist in 2019, so AMD stock traded lower into the end of 2018.But, AMD stock has risen another 70% in 2019 because the company's market share expansion narrative remains as vigorous as ever. The company continues to beat competitors to market with next-gen chips. At the same time, competitors are struggling with supply shortages. This combination has led to AMD continuing to win share, which has led to AMD stock running higher. * 4 Antitrust Tech Stocks to Keep an Eye On Can this dark horse stock keep running? Yes, but at a more moderate pace. The current outlook is for AMD to keep stealing share from Intel and Nvidia for the foreseeable future. This will power healthy revenue, margin, and profit growth. But, a lot of that growth is already priced in, as AMD stock is significantly more expensive than both Intel stock and Nvidia stock. As such, while the trends here will remain favorable going forward, the uptrend in AMD stock will likely slow. Wayfair (W)Source: Shutterstock YTD Return: 70%Hyper-growth furniture e-retail giant Wayfair (NYSE:W) has never had a problem with top-line growth. Top-line growth rates have always been very big here. Instead, the problem has consistently been with margins, which have remained stubbornly low for a long time despite increased scale. Those depressed margins got more depressed in late 2018, and as they fell, so did Wayfair stock.But, Wayfair stock has staged a huge turnaround in 2019 as top-line growth rates have remained impressive, and margins have started to show signs of improvement. Year-to-date, Wayfair stock is up 70%.How much higher can Wayfair stock go? In the near term, not much higher. The long-term growth narrative here is promising, however. Furniture e-retail is under-penetrated relative to other e-retail segments, and Wayfair is the leader in this under-penetrated yet rapidly growing market. Margins will scale over time, and the company will one day produce sizable profits. But, the valuation already reflects all this growth, and then some. As such, the stock needs to take a breather here around $150. Cronos (CRON)Source: Shutterstock YTD Return: 50%It might be weird to find any marijuana name on a list of dark horse stocks. Pot stocks were all the craze in mid-2018. But as the economy slowed and the legal Canadian cannabis market got off to a rough start thanks to supply shortages, pot stocks dropped big in late 2018. Canadian cannabis producer Cronos (NASDAQ:CRON) was no exception. CRON stock fell from $14 in mid-2018, to $7 in late 2018.But the stock has staged a huge turnaround in 2019 thanks to three things: the global economy has stabilized, the Canadian cannabis market has found its footing, and Cronos scored a huge near $2 billion investment from tobacco giant Altria (NYSE:MO). In response to all that good news, CRON stock has risen 50% in 2019. * 9 Hot Stocks to Buy Now Will renewed strength in CRON stock persist? Probably not. Cronos is the smallest of the well known Canadian cannabis producers in terms of volume of cannabis sold last quarter. But, the company has one of the largest market caps in the group, because of the Altria investment. In other words, investors expect the Altria investment to supercharge growth and allow Cronos to expand. Now, Cronos needs to deliver on those expectations. If they don't, the stock could crater. If they do, well, it's already priced in. As such, the risk-reward here doesn't look great at the current moment. Axon (AAXN)Source: Shutterstock YTD Return: 55%Last, but not least, on this list of dark horse stocks that have run higher in 2019 is law enforcement technology solutions provider Axon (NASDAQ:AAXN). This company has pivoted from selling tasers to selling a suit of cloud-hosted technology solutions to law enforcement communities around the world. As it has, the company's growth trajectory has improved meaningfully, and AAXN stock has shot higher. But, that growth trajectory hit some turbulence in late 2018 as growth slowed. Investors weren't impressed. AAXN stock dropped from $75 to $40 in late 2018.Growth has picked back up in 2019. AAXN stock has consequently rebounded in a big way, rallying more than 50% over the past five months.How much higher can Axon stock go? The rally may be over. For now. In the big picture, the growth narrative here is really good. The law enforcement world desperately needs a tech makeover. Axon is giving it a tech makeover. There's hardly any competition, because Axon has either acquired or squashed everyone else in this space. Also, the cloud-hosted solutions pivot means higher margins at scale, so not only is this a big revenue growth story, but it's also a big profit growth story, too.Having said all that, the stock is already priced for all that growth, and further upside is hard to justified, even under optimistic long term growth assumptions.As of this writing, Luke Lango was long ROKU, SFIX, NFLX, CHGG, and INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post 7 Dark Horse Stocks Winning the Race in 2019 appeared first on InvestorPlace.
The market fizzled in May. The S&P 500 fell 6.35%. Still, Neuberger Berman's Ken Turek says the pullback makes it easier to find investment opportunities.
SANTA CLARA, Calif., June 10, 2019 /PRNewswire/ -- Chegg (CHGG), the leading student-first connected learning platform, today announced that Melanie Whelan, CEO of SoulCycle, has joined Chegg's Board of Directors, effective June 5, 2019. "Melanie has built valuable brands and services that people love," said Dan Rosensweig, President and CEO of Chegg. "Her experience in business operations, international growth, and consumer marketing will be a tremendous asset to Chegg.
Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing […]
SANTA CLARA, Calif., June 6, 2019 /PRNewswire/ -- Chegg (CHGG), the leading student-first connected learning platform, today announced an innovative equity program to help employees pay off their student debt, letting more employees benefit from the value they help create. Under the Equity for Education program, Chegg has created an equity pool from their existing pool of stock which will be used to pay down U.S. employees' educational loans. Chegg sees this innovative program as a model that other corporations could adopt and tailor for their own employees.
There are two critical elements to identifying long-term winners in the stock market. First, find a secular growth industry, supported by secular growth trends with a massive addressable market. Second, find the top company or companies in that industry. Do those two things, and you've found yourself a long term-winning stock which you can buy and hold for the long haul.What exactly makes a company in a secular growth industry a "top" company? There are a lot of factors. But, arguably the most important is innovation. Simply, a company that innovates consistently in a secular growth industry is often one that is expanding its share in that industry. Companies that expand share in secular growth industries tend to consistently produce robust revenue and profit growth.And, ultimately, robust revenue and profit growth are what make stocks go higher. Thus, if you're looking for a long-term winning stock, look for an innovative company expanding share in a secular growth industry.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend Which stocks fit that description? Let's take a closer at 6 innovative stocks with big long-term growth potential. Shopify (SHOP)Source: Shopify via FlickrThe Industry: Direct-decentralized retailThe entire retail world is pivoting towards a direct-decentralized model. Broadly, the direct part is the result of the internet connecting brands/retailers directly to their customers, thereby removing the need for a middleman. The decentralized part, meanwhile, is the result of the internet democratizing the retail process so that anyone can sell anything to anyone through the internet.This model yields optimal outcomes for sellers (millions of new sellers can now compete with traditional sellers) and buyers (there's more supply, which inherently means lower prices and higher convenience). Thus, direct decentralized retail will continue to grow in popularity over the next several years.The Innovator: Shopify (NYSE:SHOP)The pioneer and leader in this market is Shopify. The company provides commerce solutions which enable and empower the millions of new sellers which comprise this direct decentralized retail model. Over the past several years, Shopify has continued to iterate, improve, and expand its suite of offerings.The net result is that the company has dramatically grown its market share in the commerce world, and continues to do so today. So long as this remains true, SHOP stock will remain on a long term winning trajectory. The Trade Desk (TTD)Source: Shutterstock Industry: Programmatic advertisingThe advertising world is increasingly shifting towards an automated ad transaction model. Broadly, this means that ad spend is increasingly being done using data-driven algorithms -- not humans and guess-and-check work -- so the ad-spend process is becoming smarter, more dynamic and more efficient than ever before. This process is called programmatic advertising. Given its multi-faceted benefits, it is the future of advertising.The Innovator: The Trade Desk (NASDAQ:TTD)The most exciting company in this space is The Trade Desk, a programmatic advertising company which has leveraged a differentiated product offering, aggressive product innovation, and platform neutrality to turn into the growth darling in the programmatic advertising space. Over the past several years, The Trade Desk has significantly and rapidly expanded its market share in the programmatic advertising market. * The 7 Best Stocks to Buy From the IPO ETF This trend will persist. As it does, The Trade Desk will continue to report great numbers, and those numbers will propel TTD stock meaningfully higher. Square (SQ)Source: Chris Harrison via Flickr (Modified)Industry: Digital paymentsAcross the global commerce space, there has been and continues to be a huge secular pivot from cash payments to non-cash payments, as consumers have increasingly adopted digital and card payment methods which are significantly more convenient. But, cash remains a big part of the global economy. Thus, there's still a ton of room for non-card payment methods to gain share over the next several years. As they do, companies which facilitate these types of payments will benefit from robust growth.The Innovator: Square (NYSE:SQ)The most innovative company in this space is Square. The payments processor has made a killing facilitating physical, non-cash payments for small to medium sized retailers. But, Square didn't stop there. Instead, they've subsequently expanded their physical offerings to be more attractive to bigger sellers, jumped into the digital payments space, created a suite of Services business, tested the waters in the banking world, and even built a food delivery platform.All in all, then, Square is innovating everywhere, and this rapid innovation has produced rapid market share expansion. So long as this continues, SQ stock will trend higher in the long run. Axon (AAXN)Source: Axon Industry: Law-enforcement technologyThe technology world is moving fast. But, the law-enforcement world has largely been left behind the technology curve. Until recently. Over the past several years, antiquated law enforcement agencies have undergone much-needed technology makeovers, which includes adopting things like smart cameras, smart weapons, cloud solutions and data-driven analytics services.These technology upgrades are happening with greater frequency and pace across the world. Soon enough, every law enforcement agency will be equipped with the latest and greatest tech.The Innovator: Axon (NASDAQ:AAXN)The pioneer, largest player and most innovative company in this space is Axon. Axon started out just selling Tasers to law enforcement agencies. Then, they pivoted into body cameras and dash cameras. Realizing the potential in the law enforcement tech world extended beyond hardware, they then pivoted into servicing the law enforcement world with cloud-hosted solutions to replace archaic on-premise solutions. * 3 Small Caps That Could Be the Next Amazon Stock Net net, the company has dramatically expanded its suite of law enforcement tech over the past several years, and in so doing, has dramatically gained law enforcement wallet share. This trend is still in its early stages, as Axon has dominated the domestic market but is only scratching the surface of its international potential. As the international growth narrative plays out, Axon's profits will run higher, and so will AAXN stock. Chegg (CHGG)Source: Rob Wall via Flickr (Modified)Industry: Digital educationThe internet has changed and continues to change many industries. One of those industries is the education world. In the education world, students are increasingly turning towards the internet for academic assistance. This includes on-demand tutoring services, online citation makers, online textbook answers and much, much more. As students turn in greater and greater frequency to the internet for academic assistance, there remains tremendous growth potential for a connected learning platform to capture and monetize all this demand.The Innovator: Chegg (NASDAQ:CHGG)The unprecedented leader and pioneer in the digital education space is Chegg. Broadly speaking, there wasn't an at-scale, digital connected learning platform in the market until Chegg came around. And, Chegg didn't start with connected learning. They started with textbook rentals and have increasingly pivoted into the digital education market over the past several years.Chegg continues to expand its connected learning platform today, so that students of all disciplines have a reason to turn towards the platform. Assuming this value and use-case expansion continues, then Chegg is on track to tap into all 36 million high school and college students in America in the future. Right now, they only have about 10% of that, so the long-term growth runway here is quite promising. Canopy Growth (CGC)Source: Shutterstock Industry: CannabisCannabis is now fully legal throughout Canada. This is just beginning. Given the overwhelming volume of research which suggests that cannabis isn't all that bad for you and the equally overwhelming volume of cannabis demand, global cannabis legalization isn't a matter of if. It's a matter of when.When it does happen, the global cannabis industry will be quite big. The trends are crystal clear. Over the past two decades, cannabis consumption among U.S. high school students has steadily increased, while tobacco and alcohol consumption have steadily decreased. Today, cannabis consumption rates are nearly equal to alcohol consumption rates among high school seniors.As such, once fully legal across the globe, the cannabis industry could measure as large as the alcoholic beverage industry, which is far in excess of $500 billion.The Innovator: Canopy Growth (NYSE:CGC)The leader and aggressive innovator in the cannabis space is Canopy Growth. Canopy is the biggest player in the legal Canadian cannabis market, with the largest growing footprint and the biggest volume and sales base by a wide margin. Further, Canopy is equipped with $4 billion on the balance sheet as the result of a big investment from alcoholic beverage giant Constellation Brands (NYSE:STZ).Canopy has been very aggressive with that $4 billion, including prepping a big launch into the U.S. cannabis market with the proposed acquisition of U.S. cannabis company Acreage. These aggressive investments will pay off in the long run. Canopy is giving itself robust and high quality exposure to every niche of the global cannabis market. As all those niches scale over the next several years, Canopy will scale, too. * 7 Marijuana Stocks to Play the CBD Trend Big picture, the company is positioned to one day be the leader in a $500 billion industry. If that happens, CGC stock will one day be worth a lot more than $16 billion.As of this writing, Luke Lango was long SHOP, TTD, SQ, AAXN, CHGG, and CGC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 6 Innovative Stocks With Big Long-Term Growth Potential appeared first on InvestorPlace.
PRESIDENT, CEO & CO-CHAIRMAN of Chegg Inc (NYSE:CHGG) Daniel Rosensweig sold 165,000 shares of CHGG on 05/20/2019 at an average price of $36.58 a share.
The education technology market is growing rapidly, creating big opportunities. These 5 stocks have the potential to yield incredible returns
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The stock market has staged an epic rally to start 2019, and leading the charge for the market has been growth stocks. Year-to-date, the S&P 500 is up 17.5%. Meanwhile, the iShares S&P 500 Growth ETF (NYSE:IVW) is up 19%, while the iShares S&P 500 Value ETF (NYSE:IVE) is up 16%. Thus, stocks are up big in 2019, and growth stocks have broadly outperformed value stocks. There are many reasons why investors have returned to the growth trade in 2019. For starters, the economy has stabilized and even improved amid healthier China-U.S. trade relations. When the economy is healthy, investors tend to pile into risk-on, growth-oriented investments. Of equal importance, the Fed reversed its stance from "hike at all costs" to "wait and see". This stance reversal has kept rates low, and low rates help support growth valuations. Also, secular growth trends in markets like cloud, data, AI and digital ads are hardly slowing.Long story short, the growth trade is not dead. Considering that the Fed projects to remain dovish, U.S.-China trade relations project to improve, and secular growth trends project to remain healthy, then the growth trade projects to remain alive and well for the remainder of 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe big takeaway? Stick with growth stocks. They've led the market higher over the past several years. They are leading the market higher today. And, they will continue to lead the market higher for the foreseeable future. * 7 Strong Buy Stocks That Tick All the Boxes With that in mind, let's take a look at six growth stocks to buy for the rest of the 2019. Facebook (FB)Source: Shutterstock The Long-Term Bull Thesis: The reasons to leave the Facebook (NASDAQ:FB) ecosystem were as strong as they will ever be in 2018 amid a plethora of data privacy scandals, and the company still added users. Net takeaway? Consumers are addicted to Facebook as much as they are addicted to the internet. Consequently, users aren't going to go away any time soon. Neither will advertisers, since they follow consumers. As such, Facebook's secular digital ad growth narrative remains robust. On top of that, the company is building out a complementary growth vertical in e-commerce. Overall, then, the growth trajectory at Facebook remains healthy, meaning that FB stock will only grind higher in the long run.The 2019 Bull Thesis: One of the biggest knocks against Facebook stock over the past few years has been that the company is entirely reliant on digital advertising and that the digital ad market will eventually slow. But that narrative will change in 2019. Over the next few quarters, we will see a new e-commerce growth narrative emerge. The emergence of that narrative will do two things. One, it will ease concerns related to slowing digital ad growth rates. Two, it will pave the path for 20%-plus growth to persist for a lot longer. Both of those developments will provide tailwinds for FB stock, and consequently, shares should stay in rally mode for the rest of 2019. Chegg (CHGG)Source: Shutterstock The Long-Term Bull Thesis: Digital education is the future. It only makes sense that as information migrates online, students increasingly turn towards online learning solutions to help them learn. But, at the current moment, there is no universal connected learning platform at scale. Chegg (NASDAQ:CHGG) is in the early days of becoming that. From homework solutions to on-demand tutors to test prep, Chegg provides a variety of learning tools through its all-in-one connected learning platform. Right now, Chegg only has 3.1 million subs, out of 36 million high school and college students in the U.S. Thus, the runway for growth is quite large, giving CHGG stock compelling long term upside potential. * 7 Stocks Worth Buying When They're Down The 2019 Bull Thesis: Chegg stock just dropped big on disappointing first-quarter numbers. But those numbers will get better as the year progresses. It's tough for me to believe that the recent college cheating scandal won't create a huge boost for Chegg's business come test prep time in the back half of 2019, as parents start spending more on college test prep amid what will likely become a more intense and rigorous college admissions process. Consequently, I expect to see Chegg's numbers get a lot better as the year progresses, and this improvement should get CHGG stock back on a medium to long-term uptrend. Weibo (WB)Source: Shutterstock The Long-Term Bull Thesis: The long-term bull thesis on Weibo (NASDAQ:WB) is pretty straight forward. Weibo is China's Twitter (NYSE:TWTR). But, Weibo has more users than Twitter, and operates at higher margins than Twitter. The only thing the company doesn't do as well is monetize each individual user, and that's likely a function of maturity (Twitter is three years older than Weibo). Eventually, Weibo will monetize each user at Twitter-like levels, meaning the company will have more users, more revenue, and more profits. Naturally, that should mean a bigger market cap, too. But, Weibo currently has a market cap about half the size of Twitter. Thus, long term upside potential is compelling.The 2019 Bull Thesis: The 2019 bull thesis in Weibo stock is likewise straightforward. Nothing Weibo did in 2018 warranted the huge selloff in WB stock. The numbers broadly remained very healthy. The only things that did happen were China's economy slowed meaningfully, trade tensions escalated, and the dollar strengthened. In 2019, China's economy is improving, trade tensions have eased, and the dollar has weakened. Thus, 2018 headwinds have turned in 2019 tailwinds. Ultimately, that should spark a big rally in WB stock into the end of the year. Square (SQ)Source: Via SquareThe Long-Term Bull Thesis: We are moving from a world of cash transactions, to a world of cashless transactions, and through facilitating various brick-and-mortar and e-commerce cashless transactions, Square (NYSE:SQ) is at the heart of this pivot. The company's gross payment volume as percent of global retail sales remains tiny. They are gaining traction among larger sellers. Growth rates remain robust. Margins are marching higher. The ecosystem is expanding with things like Cash App, Online Store, and Invoices. Overall, then, all signs here indicate that Square will continue to become a bigger and bigger player in the global retail scene over the next several years. As that happens, SQ stock will head higher. * 7 Marijuana Stocks That Are Bleeding Cash The 2019 Bull Thesis: SQ stock looks like a strong "buy the dip" candidate for the back half of 2019. This stock was crushed recently on weaker-than-expected Q1 numbers. But the numbers weren't that bad, and they should improve through the balance of 2019 as the global economy stabilizes and new e-commerce initiatives provide a healthy tailwind to growth. As such, things will get better for Square over the next few months, and as they do, SQ stock will rebound in a big way. iRobot (IRBT)Source: Shutterstock The Long-Term Bull Thesis: When it comes to iRobot (NASDAQ:IRBT), the long-term bull thesis hinges on the idea that the automation wave will ultimately sweep across the entire consumer household products space. iRobot started by selling robotic vacuum cleaners. Then, they got into robotic pool cleaners and mops. Now, they are getting into robotic lawnmowers. Next, they'll dive into robotic car cleaners, window cleaners, so on and so forth. In other words, this company expands its addressable market almost every year by introducing a new consumer robotics product. This trend will persist for the next several years as consumer robotics become the household norm. Ultimately, then, iRobot will benefit from huge revenue and profit growth in a long term window.The 2019 Bull Thesis: The reason to buy IRBT stock for the rest of 2019 is because this stock is due for a major bounce-back. IRBT stock was killed in late April on poor Q1 numbers. But, poor Q1 numbers are an anomaly, not the trend. Over the next several quarters, new product launches -- including the robotic lawnmower -- will drive improved results at iRobot, and that improvement will power a huge recovery rally in IRBT stock. Growth Stocks to Buy: Canopy Growth (CGC)Source: Shutterstock The Long-Term Bull Thesis: The growth potential in the cannabis space is enormous. At scale, the cannabis market will be as large, if not larger than, the global alcoholic beverage and tobacco markets. Both of those markets measure well above $500 billion, and they've each spawned multiple $100 billion-plus companies. Who will be the $100-billion plus giant in the cannabis space? Canopy Growth (NYSE:CGC). For three reasons. One, the company is already the leader in the legal Canada market by a mile. Two, they have $4 billion on the balance sheet which they are using strategically and aggressively to extend global dominance. Three, they are positioned to dominate the U.S. market, too, with the recent acquisition of Acreage. * Why I Regret Buying Cronos Group Stock The 2019 Bull Thesis: CGC stock should breakout into the end of the year for two big reasons. One, U.S. legislation is increasingly moving towards nationwide legalization of cannabis. As we inch closer to that landmark legislation, CGC stock will creep higher, given its Acreage acquisition. Two, the Canadian cannabis market is finally starting to stabilize after early volatility amid supply shortages. With those shortages in the rear-view mirror, the market should grow steadily, Canopy's numbers should improve meaningfully, and CGC stock should rise.As of this writing, Luke Lango was long FB, CHGG, WB, SQ, IRBT, and CGC. Compare Brokers The post 6 Growth Stocks to Buy for the Rest of 2019 appeared first on InvestorPlace.
Dan Rosensweig, CEO and president of Chegg, an educational resource company, talks to Yahoo Finance about how to address the rising costs of higher education.
We are now more than halfway through earnings season, and the broad takeaway has been largely bullish for stocks to buy. Long story short, first-quarter earnings were expected to be really bad due to slowing economic growth. But, they've actually been much better than expected, and second-quarter guides have been very strong, too. Overall, stocks are broadly rallying to all-time highs.But, this wasn't the case for every stock in the market. Instead, there were a handful of stocks that reported not-so-great first quarter numbers, and consequently dropped against the backdrop of market surging to new highs.Some of these stocks deserved to drop. Others, not so much. Indeed, there were are a handful of stocks which dropped big this earnings season that, quite frankly, shouldn't have dropped.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat makes for an interesting and compelling buy the dip situation. Stocks are red hot right now. Some aren't. Time to buy the dip in the ones that aren't, but should be? * 7 Dividend Stocks That Are Worth Your Money Perhaps. With that in mind, let's take a look at seven "buy the dip" stocks worth considering here and now. Buy the Dip Stocks Worth Considering: Chegg (CHGG)Source: Shutterstock Shares of digital education giant Chegg (NYSE:CHGG) dropped big after the company reported first quarter earnings and revenue beats, but guided below consensus estimates for second quarter and full year 2019 revenue.This big drop simply doesn't make much sense in the big picture. Sure, the second quarter and full-year revenue guides were weaker than expected. But, they were below the consensus estimate by less than 0.5%, and Chegg has developed a reputation for under-promising and over-delivering. As such, when all is said and done, revenues will likely come in well ahead of expectations, and this down-guide will be long forgotten old news.Further, all the growth metrics at Chegg remain rock solid. Revenue growth remains robust (north of 25%), the high margin Services business continues to ramp (34% growth), and margins continue to expand (EBITDA margins up 280 basis points in the quarter). So long as those growth metrics remain healthy, Chegg will remain on a long term winning trajectory towards becoming a very important, very valuable digital education company that investors should own for the long haul. IRobot (IRBT)Source: Shutterstock Shares of consumer robotics giant iRobot (NASDAQ:IRBT) dropped huge after the company reported first quarter numbers which missed on revenue estimates and included a worrisome slowdown in top-line growth trends.But, as investors know, a single quarter isn't a trend, it's a data point. Sure, the Q1 revenue growth data-point was weak. But, in the big picture, automation is happening everywhere, including on the consumer household products front.On that front, iRobot is the runaway leader, providing robotic vacuum and pool cleaners. This growth narrative is just getting started. Adoption of robotic vacuum cleaners will continue to rise over the next several years. iRobot will simultaneously release new products, like a robotic lawnmower. A whole consumer robotics revolution will play out, and iRobot's revenues and profits will soar higher. * The 10 Best Stocks to Buy for May In that big picture, a quarterly revenue miss in a quarter that doesn't carry much weight, is rather meaningless. As such, investors should take advantage of the recent plunge in IRBT stock. Intel (INTC)Source: Shutterstock Semiconductor giant Intel (NASDAQ:INTC) dropped sharply this earnings season after the company reported dour first quarter numbers that included an ugly second quarter guide and big cut to the full year 2019 guide.Behind the scenes, the global semiconductor market continues to struggle with falling demand and rising supply. Intel's bad Q1 numbers and ugly Q2 guide speak to this. But, over the next several months and quarters, demand should come back into the picture as the global economy finds its footing.Concurrently, supply should drop as players in the market more aggressively focus on discounting to clear inventory. Net net, by the end of 2019, the global semiconductor market should be a lot healthier than it is today.Intel is one of the biggest players in that market. As such, as the global semiconductor market improves from here into the end of the year, Intel stock should rise, too, making this dip look like a solid buying opportunity. Alphabet (GOOG)Source: Shutterstock Digital search and cloud computing giant Alphabet (NASDAQ:GOOG) had its worst day since 2012 this earnings season after the company reported first quarter numbers that pointed to a worrisome slowdown in the company's digital ad business.Namely, Alphabet reported its weakest digital ad and overall revenue growth rate in several years, and this continues what has been a multi-quarter downtrend in the company's ad growth rates. To make matters worse, Alphabet reported those numbers against the backdrop of its peers -- Facebook (NASDAQ:FB), Twitter (NYSE:TWTR), and Snap (NYSE:SNAP) - all reporting pretty good usage and digital ad numbers this past quarter. Consequently, investors walked away from Alphabet's Q1 earnings concerned about the company's competitive positioning in the digital ad market.Such concerns are warranted. Alphabet will lose digital ad market share over the next several years as competition continues to ramp. But, the whole digital ad market is growing, and Alphabet will remain king in that market because digital search is and will remain the backbone of the internet. * 7 Dividend Stocks That Are Worth Your Money Further, margins are showing signs of bottoming, the cloud business remains hot, and Waymo has yet to make a financial impact. In other words, there is still a lot of long term growth firepower left here, and that makes this dip in GOOG stock look more like an opportunity than anything else. Twilio (TWLO)Source: Web Summit Via FlickrAfter reporting a clean double-beat-and-raise quarter, Twilio (NASDAQ:TWLO) stock actually dropped more than 5% in response as investors basically said the numbers weren't good enough.That's fair. This is a richly valued hyper-growth stock that's been on an absolute tear. Against that backdrop, Twilio needs to not only smash expectations, but also deliver far above-consensus guides, and keep doing that over and over again, in order for TWLO stock to stay in rally mode. That's a tall order. As such, it's not surprising to see some profit takers here.But, Twilio will continue to impress with consistent beat-and-raise reports over the next several years, mostly because this company is the unrivaled leader in the secular growth Communication-Platforms-as-a-Service (CPaaS) market, which is currently tiny relative to what it will be in five to ten years.As such, secular growth drivers will keep TWLO stock on a long term uptrend, and ultimately turn most dips in this stock into buying opportunities. Spotify (SPOT)Source: Spotify Music streaming giant Spotify (NYSE:SPOT) had a rough first quarter earnings season. The company beat on its most important metric, premium subscribers. They also announced above-consensus revenues for the quarter, and delivered a healthy guide. But, SPOT stock dropped in response.Why? A profit miss and slowing ad revenue growth. Neither of those concerns really hold water in the big picture. The profit miss is more a function of spending to grow, which is working, since premium subscriber growth remains north of 30%. The more important trend to watch is margins. Margins do continue to improve with scale. Meanwhile, slowing ad revenue growth is largely meaningless. The Spotify growth story is about premium subs, not ad-supported subs. Premium revs account for roughly 90% of this company's business. Ad revs are the other 10%. Thus, a slowdown in the ad business isn't all that meaningful, especially considering Premium revenue growth accelerated in the quarter. * 7 of the Best ETFs to Buy for a Slowing Economy Overall, then, Spotify actually reported pretty strong first quarter numbers. The stock just dropped in response to unnecessarily short-sighted concerns. Through the rest of the year, subscriber, revenue, and margin growth will remain robust. Today's concerns will fade away. SPOT stock will move higher.As of this writing, Luke Lango was long CHGG, IRBT, INTC, GOOG, FB, TWLO and SPOT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post 7 Stocks Worth Buying When They're Down appeared first on InvestorPlace.
Dow Jones futures edged higher on Pfizer, Merck earnings, but Google stock and tech futures fell on Google earnings. Apple earnings are tonight.
Chegg CEO Dan Rosenweig joins Yahoo Finance's Akiko Fujita, Dan Robert and Ethan Wolff-Mann. He talks the college admissions scandal, the rising cost of college and what education institutions don't understand about today's college kids.
Chegg CEO Dan Rosensweig breaks down what moves the education platform has taken in the past three years and why the company is "believing in the inevitable."