|Bid||25.51 x 1300|
|Ask||25.60 x 2200|
|Day's Range||23.92 - 24.15|
|52 Week Range||23.05 - 35.29|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||27.97|
Pinterest debuted on the New York Stock Exchange in late April 2019, missing estimates but beating in revenue. While many believe the company to be largely female-centric, Greycroft Venture Partner Kamran Ansari, who is also the former Head of Corporate Development and Strategy at Pinterest, opposes. He says says the company ‘grows organically’ and had a large male user base in Japan upon expansion to the oversea markets.
Equiteq CEO David Jorgenson joins Yahoo Finance's Adam Shapiro, Julie Hyman, and Brian Sozzi to explain why tech companies should be paying close attention to the cybersecurity index.
BOSTON, May 24, 2019 /PRNewswire/ -- Thornton Law Firm LLP announces that it is investigating a potential securities class action on behalf of purchasers of the securities of Pinterest Inc. (NYSE ticker: PINS) pursuant to, or traceable to, the registration statement and prospectus issued in connection with Pinterest's April 2019 initial public offering ("IPO"). The investigation involves possible violations of the federal securities laws. If you purchased Pinterest Inc. stock, you may have a claim for damages resulting from misstatements in the Pinterest IPO prospectus and registration statement.
Meanwhile, TransferWise announced a $292 million secondary round that values the company at $3.5 billion.
All eyes in the tech community are firmly fixed on the massive multi-billion dollar "unicorns" hurtling toward their initial public offerings (and long-awaited exits) — and there are some local investors who could reap the potential rewards. Car-sharing juggernaut Uber Technologies (NYSE: UBER) and its Pepsi equivalent Lyft Inc. (NASDAQ: LYFT) have both fallen from their initial public offering prices earlier this year, shedding billions of dollars in market value. Recipe repository and "pinnable" social sharing site Pinterest (NYSE: PINS) has done better, now trading at about $24 per share, higher than its $19 per share initial offering.
For social media company Snap (NYSE:SNAP), life as a public company has been a roller coaster. It started with a huge post-IPO pop, as SNAP stock jumped from its $17 IPO price to $30 within the first few days of trading.Source: Shutterstock Then, a few bad earnings reports later, SNAP stock price tumbled all the way to $5, as its user growth fell flat, its revenue growth slowed, and its losses piled up. In 2019, though, SNAP stock has nearly doubled amid renewed user growth, healthy revenue growth trends, and improving margins. * 6 Stocks to Buy for This Decade's Massive Megatrend In other words, Snap stock has risen tremendously, tumbled, and rallied by a large amount, all in two years. Naturally, the question now is: What's next? Another surge higher? Another huge retreat?InvestorPlace - Stock Market News, Stock Advice & Trading TipsNeither. I actually think Snapchat stock will break its two-year trading pattern and move largely sideways for the rest of the year. SNAP stock price won't drop tremendously because it has tons of catalysts on the horizon which should help it grow at healthy rates. But it won't rally in a big way, either, because its valuation is very rich and already prices in gains from all those catalysts.So, for the first time in its two-year history, SNAP stock may actually find some stability at this point in the lower double-digit range. Lots of Catalysts Will Keep Selling MutedSnap has a plethora of catalysts on the horizon which will keep its growth trends healthy for the rest of 2019, and that elevated growth will keep investors from selling SNAP stock in bulk.Snap has shown good progress in early 2019. After plateauing for several quarters, Snap's user base finally grew again in early 2019, as the company moved past the awful redesign headaches that plagued it in 2018. Its revenue growth trends broadly remained healthy as advertisers continue to give the platform a shot because of its unprecedented reach among America's young people. Its gross margins continued to move higher, and its operating-spending rates dropped, as its business grew.All in all, Snap has proven that it can continue to grow, and that's why SNAP stock has bounced back from the dead.These improved growth trends should persist for the rest of the year. On the user-growth front, Snap's user base should remain largely stable as the ramp over at Instagram in general and Instagram Stories in particular appears to be in the rear-view mirror. Plus, the company has successfully overhauled its Android app, and that should boost its international user growth.Meanwhile, on the revenue front, continued healthy user growth trends should help Snap attract more and more advertisers to the platform. Also, the more mature Snap's advertising business gets, the more ad dollars it should attract as advertisers become more and more comfortable with spending money on the relatively new platform. Its gross margins will continue to improve as its business grows, and its operating-spending rates will continue to drop.All in all, SNAP's growth trends should remain favorable for SNAP stock for the rest of the year. Because of that, it's tough to see SNAP stock price falling much from its current level. Rich Valuation Will Keep Buying MutedAt the same time, it's equally tough to see SNAP stock rallying much, given its already stretched valuation. In short, SNAP stock price already fully reflects all of the company's 2019 positive catalysts, and then some.SNAP stock currently trades at 12 times its 2018 sales. That puts the stock in a class of its own when it comes to digital advertising names. Facebook (NASDAQ:FB) trades at nine times its trailing sales. So does Twitter (NYSE:TWTR). Meanwhile, Alphabet (NASDAQ:GOOG) trades at six times its trailing sales. Indeed, the only other digital ad stock with a comparable sales multiple is Pinterest (NYSE:PINS), and Pinterest's revenues surged 50%-plus last quarter and its user base jumped 20%-plus.In contrast, Snap's revenues increased by less than 40% last quarter, and its user count dropped year-over-year.A great deal of the premium valuation reflected by SNAP stock is due to its potential ability to increase its margins. Snap runs huge operating losses, while Facebook, Twitter, and Alphabet all have very high margins. The potential for Snap to one day generate high margins is largely responsible for the premium multiple of SNAP stock.But, even taking into account the potential margin increase, today's valuation seems full. Snap's revenues can and will easily rise at a 20%-plus rate for the foreseeable future. Its gross margins can climb towards 80%. Its operating-spending rates could reasonably drop towards 30% as its business grows. But, even with all those aggressive assumptions, Snap will still only report EPS of about $0.70 by fiscal 2025.Based on a forward multiple of 25 which is average for digital-advertising stocks,, that implies a reasonable 2024 price target for Snap stock of $17.50. Discounted back by 10% per year, that equates to a fiscal 2019 price target of just under $11. The Bottom Line on SNAP StockLife as a public company has been a roller-coaster ride for SNAP stock. This wild ride may be ending soon. There are enough positive catalysts on the table to keep SNAP stock price from dropping much for the foreseeable future. At the same time, there are enough valuation risks to keep the stock from rallying much for the foreseeable future, too.Thus, SNAP stock looks destined to trade sideways over the next several months and quarters. That would be an unusual - and perhaps welcome - break from the big swings this stock has made over the past two years.As of this writing, Luke Lango was long FB, GOOG, and PINS. 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 Why Snap Stock May Finally Stabilize for the First Time in 2 Years appeared first on InvestorPlace.
Twitter co-founder Ev Williams on Tuesday compared the waning positive buzz around social media to a “sugar high” that’s wearing off.
The performances of the IPOs of consumer-facing internet stocks have certainly been mixed, as shown by the disappointing debuts of Uber Technologies (NYSE:UBER) and LYFT (NASDAQ:LYFT).Source: Shutterstock The IPOs of enterprise-cloud names have been the big winners. A notable example is Zoom Video Communications (NASDAQ:ZM), which is up a sizzling 145%. In fact, on Friday there was another hot cloud IPO, Fastly (NYSE:FSLY), which soared 50%.Yet there has been one consumer internet IPO that has bucked the bearish trend: Pinterest (NYSE:PINS) IPO. But unfortunately, even this company - which operates an online scrapbooking platform -- ran into some headwinds on Friday. Following its first quarterly report as a public company, Pinterest stock plunged 13% to $26.70. But PINS stock is still up about 22% since Pinterest IPO in mid-May.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow the earnings report was fairly solid (actually, it was not too much of a surprise since PINS' registration form provided color on the quarter).So let's take a look at the quarter. Its sales jumped by 54% to $201.9 million, compared to analysts' consensus of $200.7 million. The company provided full-year, top-line guidance of $1.055 billion to $1.080 billion. Analysts, on the other hand, were looking for $1.07 billion.But the real issue - for Pinterest stock - was the bottom line. Consider that its net loss was $40 million. While that was a $7 million improvement over last year's results, the loss was a surprise for the owners of Pinterest stock. The adjusted loss was 32 cents per share of PINS stock, but analysts' average forecast was a profit of 11 cents per share.When companies are growing quickly, their expenses can pile up. Besides, as Pinterest CEO Ben Silbermann said in an interview with CNBC's Jim Cramer, the company is focused on its "long-term" outlook."And he has a point. The potential of PINS stock hinges on drivers that will take some time to get traction, such as: * International Growth: About 70% of the website's users are from outside the U.S. But its foreign revenues are still minimal, coming to only 7% of its total. And that was up from 5% in the same quarter of 2018. In other words, its overseas revenue can increase significantly. But penetrating foreign markets is far from easy. On the company's earnings call, Silbermann noted that its foreign revenue likely will not materially improve until some time next year. * Engagement: Silbermann also indicated that users generally go to Pinterest for a particular purpose and then will usually not come back. As a result, he is looking to invest in new features in an effort to boost engagement. But again, that will take time and could prove quite difficult. Just look at the struggles Twitter (NYSE:TWTR) has had with engagement. The Bottom Line on Pinterest StockThere are certainly long-term catalysts that should drive Pinterest's growth and help it reach profitability, boosting PINS stock in the process. It also helps that the company's user base jumped 22% last quarter to 291 million.The problem is that Pinterest stock already reflects much of the good news and then some. Keep in mind that PINS stock is trading at 17.5 times the company's sales. By comparison, Facebook (NASDAQ:FB) and TWTR trade at roughly nine times their sales.So Pinterest stock could drop further, especially as more shares of PINS stock come on the market when the lock-up expiration occurs in a few months. It will probably take some time for several catalysts to meaningfully boost PINS stock.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Should Investors Buy Pinterest Stock on Weakness? appeared first on InvestorPlace.
Pomerantz LLP is investigating claims on behalf of investors of Pinterest, Inc. (“Pinterest” or the “Company”) (NYSE: PINS). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. On this news, Pinterest’s stock price fell $4.16 per share, or 13.48%, to close at $26.70 per share on May 17, 2019.
After a long drought, in 2019 we've had a flood of Initial public offerings. But a few of them are more interesting than the rest and perhaps the highest profile of all time. Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) are the two mega unicorns and the headline hogs. But Pintrest (NYSE:PINS) stock is my focus today because it is likely the sanest of the bunch.Source: Shutterstock The idea is to hold Pintrest stock for the long term as it could have an easier path to prosperity than UBER or LYFT. This is far from saying that PINS is a sure thing. In fact, it's not even a safe bet, but it makes for the best speculative trade for the next two years.With the advent of the cloud, the ubiquity of smartphones and the ease of connectivity, we now consume a ton of content online. Some of it is educational as I resort to the web for all my DIY help. Most of it so far has been on YouTube but I find myself looking on Pintrest more often. I bet I am not alone.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGetting expert help and ideas has become so easy online and Pintrest will capture more of the traffic in the next few years. It's a blend of YouTube and Facebook where like-minded people exchange ideas. I log on, pick a topic and instantly connect with my 290 million friends who use PINS on a monthly basis.With a few clicks, I can learn more about sport, health, decor, math or even classic trucks. I learned that while restoring my 1972 International Harvester pick-up. So what's not to like? Sign me up. * 10 Baby Boomer Stocks to Buy The topics are endless so the human imagination can take this platform to its fullest potential. The exciting part about this is that Pintrest has not yet scratched the surface overseas. Most of the income is from the U.S., so like Netflix (NASDAQ:NFLX), PINS has tremendous upside potential from growing its global pie piece.So how come the stock fell 15% after it reported earnings last week? Misalignment of expectations. Wall Street wanted to see a better bottom line than management delivered. But selling it for that reason is a mistake.PINS reported that they grew membership 22% year-over-year. The potential is not only with the count growth but with turning them into paying customers. There we also learned that their average revenue per user (ARPU) was up 26% YoY.So clearly, management is executing on growth plans successfully and they are focused on the right areas of their business. But instead of applauding them for the efforts, investors mistakenly focused on the fact that they missed their profit targets.PINS is a growth company so when I evaluate it, I give them a pass on the bottom line. It's more important to me that they deliver the growth they promise than profitability. They are supposed to spend a lot to grow, just ask Amazon (NASDAQ:AMZN) and NFLX investors. So for as long as PINS management continues to deliver fast growth, I don't care as much about a small miss on earnings.What about the whole sector? Is it a fad or a sustainable concept for years to come?There is no denying the fact that social media is here to stay. Of the major players, Pintrest is the one to own for the next few years. This is a stock to keep and should deliver a hefty return for those who are willing to be patient and perhaps see some short-term redness.Facebook (NASDAQ:FB) is the behemoth and a clear winner. But from here, I also like the odds for PINS. Twitter (NYSE:TWTR) has hit a plateau in user growth while PINS is just starting out. I am not a fan of Snapchat (NASDAQ:SNAP) at all since it had its chance and an extremely wild ride lower from its IPO. * 7 AI Stocks to Watch with Strong Long-Term Narratives It's simple: PINS stock has the cleanest upside potential from here of all the majors of social media. I can see a clear path to growth behind its global efforts. Internationally, the pool of potential paying users is massive as they have yet to maximize that.Its latest report shows that it grows sales 54% YoY and of it 100% in the international markets. However, those sales are only $15 million versus $187 million from the U.S. Clearly, they have room to grow there.In addition, so far their target audience is somewhat focused. But I bet that over time, PINS management will learn how to widen their target reach. And if we extrapolate the current growth metrics over to the new groups, they will leverage current systems to materially expand the P&L.In summary, Pintrest delivered 54% top-line growth, 22% user growth and 26% arpu growth and Wall Street sells it down 15%? Wrong … buy it.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Why Pintrest Stock Is a Better Bet Than Uber or Lyft appeared first on InvestorPlace.
2019 has arguably been the best year for IPO stocks in two decades. Sure, other years have had one or two big offerings that have captivated the market. But 2019 is shaping up well for both the breadth of the IPO stock pool and the star power of some sizzling headlining names.Not only do we have the seven IPO stocks discussed below, there are more on the way such as Slack and AirBnb. After years of many of the country's fastest growth companies remaining stuck in venture-capital hands, we public investors are getting our shot at a ton of exciting growth companies. * 7 Stocks to Buy for Over 20% Upside Potential But discretion is required. Not all new IPOs are bound for greatness. In fact, with the IPO stock window wide open, banks are using this opportunity to push out all sorts of new offerings to the public. Some of these will work out well, and others will be flops. Here's what you need to know about seven of the year's biggest IPO stocks so far.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Hot IPO Stocks: Uber (UBER)Source: Shutterstock Morgan Stanley's Michael Grimes is developing a spotty reputation. The bank's leading IPO dealmaker was responsible for both the Facebook (NASDAQ:FB) and Uber (NYSE:UBER) IPOs. FB stock dropped more than 50% in the months after its IPO. Meanwhile, the Uber IPO came in far short of expectations and has traded fairly poorly, even after the downbeat IPO price.However, if we learned anything from Facebook stock, it's that a flop IPO isn't a death sentence for a public company. After its terrible trading debut, Facebook turned the corner. Mobile advertising started to take off and shares now trade for around 4x their IPO price. Will Uber be able to make a similar turnaround?Uber's financials are certainly troubling. The company isn't a huge profit generator like Facebook, at least not yet. But it's the leader in ride sharing both in the U.S. and dozens of overseas markets. On top of that, Uber has advanced aggressively into other adjacent markets, like food delivery.Uber is a high-risk, high-reward play, for sure. There's a chance that the company will never become profitable and go bust. But it's the clear dominant market leader, and the market should reward them for that.Don't invest funds that you can't afford to lose, but if you have a high risk tolerance, UBER stock is a buy here. Lyft (LYFT)Source: Shutterstock To be fair, Lyft (NASDAQ:LYFT) stock hasn't been one of the hot IPO stocks over the past weeks. In fact, it has taken quite a tumble since it IPOed at $72 and subsequently started trading at $87. As always, however, price matters. Lyft stock is a far more interesting investment candidate here at $55 than it was when the stock debuted.There are good reasons to be bearish on LYFT stock. Our Dana Blankenhorn offered a solid take. He warned about the company's share lock-up expiry in September, its issues with self-driving vehicles and its potential for running out of cash before it becomes profitable. These are all valid concerns. Their first quarterly earnings report did nothing to impress those who are doubting Lyft's business model either. * 7 High-Yield REITs to Buy (Even When the Market Tanks) But I think it's too early to throw in the towel on Lyft as an investment idea. Ride-sharing is already a big market, and it's only going to get bigger in coming years. In the U.S., Uber and Lyft dominate the market with little additional competition. As such, this offers an opportunity for both firms, gradually, to raise prices and reach profitability or at least slow down cash burn.It's possible that LYFT stock collapses, particularly if the stock market as a whole goes south. But for now, the company's rapid growth should be enough to keep traders interested in the stock at its significantly reduced valuation. I rate LYFT stock a hold. Beyond Meat (BYND)Source: Shutterstock Beyond Meat (NASDAQ:BYND) has taken the stock market by storm, offering the hottest-trading IPO of the year so far. BYND stock, which IPOed at a measly $25 per share, has now soared to as high as $97 and even after a big drop today is still holding around the $82 mark now.First things first, Beyond Meat has a great story. The company offers what many are saying is the most compelling meatless burger option to date. Competitors have been trying to launch a plant burger since the 1980s, but it has been hard to get the texture and taste right. Apparently Beyond Meat has gotten closer than most. As a result of its success, Beyond Meat is picking up distribution rapidly in grocery stores and restaurants. Almost every week, we've been hearing about a new restaurant partnership.Unfortunately, the market has taken this great story and blown it totally out of proportion. BYND stock is now selling at 60x its annual revenues. Yes, Beyond Meat is doubling its revenues every year for the time being. But even at that growth rate, it'd still be selling for 15x sales in 2021. That's ridiculous for a food company. I'd be hard-pressed to justify more than 7x sales for a food producer once the growth rate starts to slow down.BYND stock made a lot of sense at its IPO price. Up here, however, it's simply priced too high to succeed. Other companies aren't going to acquire Beyond because it'd be too dilutive at this price-to-sales ratio. Meanwhile, Impossible Foods, funded by the likes of Bill Gates, is ramping up their competition to Beyond in the plant-based protein space.Once the hype wears off and the trading float frees up, BYND stock will drop sharply. That's not a judgment on the company. The valuation is simply too high for Beyond Meat's extremely limited sales and large losses at the moment. Needless to say, I rate BYND stock a sell. Pinterest (PINS)Source: Shutterstock Sometimes Wall Street can miss stocks if most analysts are outside of a company's core market. An example of this was Etsy (NASDAQ:ETSY). The stock started trading in 2015 around $28 per share. It traded down to below $10 at one point, and skeptics were giddily writing the company's obituary. The tables turned, however, as Etsy was able to prove its business model worked, and the stock has shot up more than 500% in recent years.There's no guarantee that Pinterest (NYSE:PINS) can be another success like Etsy, but I see the same opportunity for a misunderstood business model. Sure, Pinterest may not have the same wide user base as other social networks/shopping sites. What it does have is a core passionate user base. And at 80 million monthly active users in the U.S., there's certainly enough of a business here to achieve profitability if revenue per user can ramp up. * 6 Chinese Stocks That Could Pop On a Trade Deal Interestingly, the current valuation for PINS stock is just $15 billion or so. The company last raised money on the private market in 2017 at a valuation of around $12 billion. That means the company's growth since then -- including 60% revenue growth last year -- is coming at a reasonably cheap price for new shareholders.Sure, the company's first earnings report was a big dud and killed the stock's momentum. But that gives folks a chance to buy again at a decent price. Pinterest will need a better earnings report next time to get investors excited again. There's certainly a decent investment case though, regardless. I rate PINS stock a hold. Hot IPO Stocks: Luckin Coffee (LK)Source: Shutterstock Luckin Coffee (NASDAQ:LK) just launched its IPO last Friday. The IPO priced at $17 and traded to as high as $25 on its opening day. The caffeine high has quickly worn off, however, as LK stock is already back down below $19. Unfortunately for its shareholders, I see LK stock dropping a lot lower over the next year.On the surface, Luckin seems like an exciting opportunity. The company is aiming to be the Starbucks (NASDAQ:SBUX) of China. It has already expanded from a handful of stores at the end of 2017 to more than two thousand stores today. According to its IPO documents, it intends to overtake Starbucks in total store count by the end of this year. That's some pretty amazing growth.Unfortunately, Luckin's business model doesn't appear to be nearly as robust as Starbucks'. Last quarter, for example, the company had an operating loss of $78 million on just $71 million of sales. That's an incredible rate of money burning. Just cost of goods sold and rent for the store locations alone cost more than all the cash Luckin took in, and that's before you get to SG&A, marketing and other essential costs.Luckin needs far more sales from each store. Just setting up hundreds more stores will do little to fix the company's gaping losses when each store is losing so much money as it is. To make matters worse, Luckin's sales trajectory has slowed dramatically. I rate LK stock a sell. It has a ton to prove or shareholders will be dumping Luckin in a hurry. Tufin Software (TUFN)Source: Shutterstock Tufin Software (NYSE:TUFN) isn't the most popular of the IPOs on this list, but it could just end up delivering the best results for shareholders over the years. Tufin Software is a security services play. Two ex-employees from highly successful security firm Check Point (NASDAQ:CHKP) founded Tufin almost 15 years ago and have built it into an emerging power.Even though TUFN stock has already traded up from $18 to $22 following the IPO, it still represents solid value here. Its current share price represents a market cap of $730 million. That amounts to about 9x sales for a company that is growing revenues annually around 20%. Revenues have grown from $65 million to $85 million last year, and are on target to exceed $100 million this fiscal year. * 7 Stocks to Buy that Lost 10% Last Week Impressively, Tufin is already right on the verge of profitability. It has been generating EPS generally within a few cents of breakeven in recent quarters and has even come up with a couple of quarterly profits. Unlike many recent IPOs, TUFN stock priced at a reasonable valuation, leaving some gains on the table for its new retail shareholders. I rate TUFN stock a buy and wouldn't be surprised if it trades up to $30 over the next year. Zoom Video (ZM)Zoom Video (NASDAQ:ZM) has lived up to its name. ZM stock has zoomed from an opening day price of $62 to as high as $91. It's even more impressive when you realize that the stock IPOed at just $36. Zoom even managed to hit a new high on Monday before reversing as the stock market turned downward on China worries. I'd wait for a much bigger decline before considering a purchase of ZM stock, however.The main obstacle here is price. The company is selling at an incredible 65x sales at the moment. Generally, it's wise to avoid companies trading above 10x sales. Certainly, if a company is going for more than 20x sales, it has to have a stratospheric growth rate to justify it.Zoom doubled revenues last year, but it already appears to be slowing down a bit. It gets exponentially harder to maintain blistering sales growth as your base of revenues expands. By 2021, it wouldn't be surprising if Zoom's revenue growth rate is down to 50% annually. That'd still be great if the stock's valuation were more reasonable. But investors are paying more than $20 billion today for a company that has just $330 million in annual sales. That's an insane price. I rate ZM stock a sell and see it dropping back toward its opening print around $60.At the time of this writing, Ian Bezek owned FB stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? appeared first on InvestorPlace.
The next big stock debut could be the Fiverr IPO. Recently, the IPO market has gotten choppy. Of course, there were the disappointing offerings of the high-profile Uber (NYSE:UBER) and LYFT (NASDAQ:LYFT). Pinterest (NYSE:PINS), which came public in mid-April, is also coming under pressure because of a disappointing earnings report.Source: Microsoft Despite all this, the volume of IPO activity remains strong. It certainly helps that there have been some standout deals like Zoom Video Communications (NASDAQ:ZM). And of course, another key is that -- even with the recent volatility -- the markets are still near all-time highs.So what about the Fiverr IPO?InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Is Fiverr?The roots of Fiverr go back to 2010 when two entrepreneurs in Tel Aviv, Micha Kaufman and Shai Wininger, teamed up to build an online marketplace for connecting freelancers with buyers. The concept was simple: With as little as $5, you could get quality service.According to Micha, in the Fiverr IPO filing: "Shopping online has evolved into an enjoyable experience that has many benefits: efficiency, diversity and choice, transparency of product attributes, quality and price and the reliability of service and delivery. We saw no reason why we couldn't create a similar model for digital services."While the initial Fiverr website was fairly basic, it still worked quite well as growth took off. Along the way, the company was able to raise venture capital from top-tier venture capitalists like Accel Partners and Bessemer Venture Partners. There were also several acquisitions to bulk up the operations, including deals for VeedMe (video creation marketplace), AND CO (software tools for freelancers) and ClearVoice (content marketing).As of now, Fiverr is a diverse platform that offers over 200 services. Just some of these are voiceover, logo design, language translation and blog writing. In fact, since the inception of Fiverr, there have been more than 50 million transactions from over 5.5 million buyers and more than 830,000 sellers. * 7 Stocks to Buy for Over 20% Upside Potential Pulling this off has certainly required sophisticated technology development to scale the operations. And yes, a key part of this has been leveraging AI (Artificial Intelligence). According to the Fiverr IPO filing: "Our proprietary machine learning technology and expansive data sets allow us to personalize experiences for both buyers and sellers. We strive to anticipate our buyers' future needs based on their buying behavior and provide category and service recommendations. We also provide deep insights to our sellers through sophisticated data analytics and streamlined software tools so that they can effectively manage their business and maximize earnings."In terms of growth, it has been robust. In the latest quarter, revenues jumped by 43% to $23.8 million (the company generates revenue primarily from transaction and service fees). The market opportunity is also enormous. Fiverr estimates the spending at a whopping $100 billion. Some of the drivers include: the growth in freelancing, the ubiquity of smartphones and the popularity of the do-it-for-me movement. Bottom Line on Fiverr StockSo what are the prospects of the Fiverr IPO? Well, there have been several online marketplace operators that have come public during the past year and the results have been somewhat mixed. Pluralsight (NASDAQ:PS) has logged an impressive return of 129% while Upwork (NASDAQ:UPWK) is up about 6%.Something else: The initial Fiverr IPO filing does not have any pricing details. Until they are disclosed -- which will likely be in a couple weeks -- it will be easier to evaluate the offering.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post What You Need to Know About the Fiverr IPO appeared first on InvestorPlace.
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down Beyond Meat, Inc. (BYND) and its recent IPO that has seen it destroy Uber (UBER) and Lyft (LYFT).
Pinterest (NYSE:PINS) went public in April. Its first-day return was 28.4%. Snap (NYSE:SNAP) went public in March 2017. While Pinterest stock has an amount of risk, Snap stock still has been really bumpy since its opening. Source: Shutterstock Its first-day return was 44.0%. Both raised more than $1 billion in their respective IPOs, and both don't make money.So, which would you buy? SNAP stock or Pinterest?InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's an intriguing question. * 7 High-Yield REITs to Buy (Even When the Market Tanks) A Look at SNAP StockIn March, I discussed the reasons why I wouldn't bet on SNAP. For me, it came down to the fact it had doubled in price in less than six months, this for a company that was having troubles hanging on to users and losing a boatload of money. That being said, I did finish by stating that if you were someone with a high-risk tolerance, SNAP stock was one of the more intriguing low-priced stocks available. Since then it reported Q1 2019 results April 23 and they were better than expected with a loss of $0.10, two cents better than the consensus. On the top line, forecasted revenue was $320 million, 4.2% higher than the analyst estimate. Finally, daily active users and ARPU were 190 million and $1.68 respectively, both well clear of analyst expectations. However, it's stock actually fell on the news, and it's been on a downward trend ever since, although it's still well above $10, which it first hit in February. The problem, as analysts and InvestorPlace's own Will Healy recently pointed out, is that Snap's got a long way to go before it is profitable. "Analysts predict Snap will continue to lose money until at least 2022," Healy wrote May 7. "This means the company has to either increase debt or dilute its stock further to stay in business, let alone fund a counterthreat to Instagram."If you follow Tesla (NASDAQ:TSLA), you're absolutely aware of the stress an ongoing cash crunch puts on a company. One wrong move and it could be lights out. That's never an easy thing to put out of your mind if you're the CEO. However, Snap CEO did get a little good news about Instagram May 16. Facebook (NASDAQ:FB), which had been testing Direct, a standalone messaging app for Instagram users, will now integrate the messaging capabilities directly into the Instagram app itself, saving Snap one less aggravation. SNAP stock jumped more than 7% on the news. My stance on SNAP hasn't changed.While I wouldn't own it, I do feel it continues to move in the right direction. If it can continue to keep the lights on until becoming profitable, aggressive investors are wise to consider it. What About Pinterest?Pinterest stock was having a strong first month as a public company until it announced its first earnings report May 16 after the markets closed. Investors didn't like the news. As I write this, Pinterest stock has given back all be about 7% of its post-IPO gains. Investors knew heading into Pinterest's Q1 2019 earnings that it was losing money so the fact that it announced a loss of $41.4 million, 21% lower than a year earlier, should not have come as a surprise to anyone. However, analysts were expecting a loss of 11 cents. The fact that Pinterest came in 200% higher with a 33-cent loss spooked investors."There is a lot of trepidation in the market today because of what we just saw with Uber and Lyft," said John Mullins, associate professor of management practice at the London Business School.Frankly, the fact that it grew revenues by 54% in the quarter to $202 million and reduced the amount of its loss year over year, are signs it could get to profitability long before Snap does. The biggest positive I see looking through Pinterest's Q1 report is the future potential of its international audience. Its monthly active users outside the U.S. grew 29% to 206 million, almost three times higher than those in the U.S. Yet, its average revenue per user internationally was a mere 8 cents compared to $2.25 in the U.S.Should Pinterest take advantage of its international user base in terms of advertising, the sky's the limit. The Bottom Line on Pinterest StockAlthough Snap is making strides in its business, if you put a gun to my head and forced me to buy one of the two stocks, I would definitely go with Pinterest. From where I sit, the risk associated with Pinterest stock is far less than with SNAP. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post When It Comes to Risk, Pinterest Stock Is a Better Buy Than Snapchat appeared first on InvestorPlace.
In his second "Executive Decision" segment of Friday's Mad Money program, Jim Cramer sat down with Ben Silbermann, CEO of Pinterest, Inc. , the online discovery service and recent IPO that saw its shares fall 13.4% after reporting its first quarterly earnings as a public company. Silbermann said despite now being public, he remains focused on Pinterest's users and providing them the best experience possible.
Social media firm Snap (NYSE:SNAP), the owner of the Snapchat social network, is one of 2019's most obvious redemption stories. After slumping for much of its life as a public company following its March 2017 initial public offering, Snap stock has more than doubled in 2019.Source: Shutterstock On Thursday, Snap stock jumped 7.13% on volume that was nearly 50% above the daily average after newly public rival Pinterest,(NYSE:PINS) forecast 2019 revenue of $1.055 billion-$1.08 billion, roughly in-line with the $1.06 billion analysts, on average, were expecting. * 7 High-Yield REITs to Buy (Even When the Market Tanks) That was a one-day sympathy rally, but Snap stock has had some credible winds at its back this year. Snap reported a first-quarter loss of 10 cents per share on revenue of $320 million, much better than the loss of 12 cents per share on revenue of $306 million that analysts, on average, had expected.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Snap offered second-quarter revenue guidance of $335 million to $360 million, putting the midpoint slightly ahead of an analyst projection for $345.5 million," according to Barron's. Not Everyone's ConvincedWhile the redemption of Snap stock this year is irrefutable, some analysts and investors remain skeptical about Snap Inc stock. That is an easy posture to have after a stock more than doubles, but more importantly, Snap faces multiple competitive threats from the likes of Facebook Inc. (NASDAQ:FB), Twitter (NYSE:TWTR) and Pinterest, among others.Plus, Snap stock trades at 12 times its sales and seven times its book value, multiples that are higher than the comparable metrics on Facebook, a profitable, mega-cap company.The average analyst price target on Snap stock is about $11.50, nearly exactly where the stock closed on May 17. Some analysts are not so optimistic.JPMorgan Chase analyst Doug Anmuth recently reiterated his Underweight rating on Snap stock. Looking at some of the price targets that are above where Snap currently resides, those analyst forecasts imply upside of just 5%-10% from current levels.Conversely, some analysts are more optimistic about the shares of the social media firm."As a result, we believe Snap is likely to become profitable over the next five years. We are maintaining our $14 per share fair value estimate for Snap," said Morningstar. "After rising more than 140% from its 52-week low in December to its $12 range currently, the stock is trading in 3-star territory and we recommend waiting for a wider margin of safety before investing in this no-moat and very high uncertainty brand."And for the uber-bullish, RBC analyst Mark Mahaney believes Snap Inc stock can surge all the way back to the magic number of $17, its IPO price. The Bottom Line on Snap StockSnap stock has recently encountered some lethargy. Even with its big pop on May 16, the shares are down about 2% in May.Adding to the case for caution towards Snap stock, the company still is not profitable, and as the spate of recent "unicorn" IPOs suggest, Wall Street does not have the patience it once had for money-losing social media and technology companies. By some estimates, Snap will not break even on an EBITDA basis for another two years.The near-term bottom line for Snap stock is that it could be vulnerable to some profit-taking, but the company is retaining younger users and growing that base and has some potentially compelling initiatives underway. Consequently, investors who want to be engaged with the social media stock right now can consider buying a small amount of Snap stock.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post After an Epic Rebound, Snap Stock Could Test Investors appeared first on InvestorPlace.
The social discovery platform operator reports stumbles in its first quarterly report as a public company. There's a balance that it needs to get right to win on Wall Street, and the clock is ticking.
Pinterest Inc. shares tumble, as analysts weigh in on the company’s first quarterly earnings since going public, with most seeming unfazed by bigger-than-expected losses.