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Earnings rundown: Pinterest, Spotify, Shopify

Yahoo Finance’s Myles Udland and The Final Round panel break down some of the most notable earning news.

Video Transcript

MYLES UDLAND: All right, welcome back to The Final Round here on Yahoo Finance. Myles Udland with you in New York. As we mentioned at the top of the program, the biggest tech companies in the world all set to report the results after the close today. But over the last 24 hours, we've seen a number of other high-flying and notable tech companies report their results.

And some disparate performance here from their stocks after the results. But let's start with something on the positive side. That, of course, is what's happening over with Pinterest. We broke the numbers for you last night on this program. The stock right now is trading at a record-high 62 bucks a share, up 26% following their results last night.

And Dan Roberts, this came up in the 4 o'clock hour, you're usually with us from 3:00 to 4:00. And Andy Serwer, our editor in chief, kind of noted that [? these ?] here for Pinterest, it's been a very good stock during the pandemic. And it also, you know, offers advertisers access to a social network that isn't Facebook.

DAN ROBERTS: Exactly right. And, you know, most notably, Pinterest noted a shift in advertiser spend because of the Facebook boycott. So a little benefit there, even though we've said for so long that the Facebook ad boycott didn't really hurt Facebook very much, which is true. Both things can be true.

Yeah, you mentioned Andy Serwer, he's a longtime fan of this company. He loves to just point out that amid sort of the much hyped parade of unicorn tech IPOs, and Pinterest was one of those, Pinterest was a little bit quieter arguably. And I think that's fair. You know, maybe that's anecdata, maybe it's a vague classification.

But I think that's fair, that Pinterest's IPO was sort of a little quieter. And I think it was by design. It's also because of its CEO, Ben Silbermann. I think they don't kind of invite as much frenzied hype as some of these other names, just a quiet, slow, steady performer. And of course, the key being that ad spend growth, you know? Advertising really an interesting story there.

Now, I'll tell you what I still haven't seen. And, you know, I didn't dive fully into the earnings call, maybe they addressed this. But I still haven't seen what a lot of analysts who come on and pump Pinterest have been telling us on our live shows for a couple years already, which is soon, soon, it's going to expand its customer base, and it's no longer going to be the image that a lot of people rightly have, which is that it's mostly female, it's mostly wedding content, although, during the pandemic, it's probably not wedding consent.

But I haven't yet anecdotally seen that shift to a broader type of customer using and sharing Pinterest. Maybe soon.

MYLES UDLAND: I like Pinterest. I'm a broader type of customer. So there's the evidence on that. But I mean, I think overall, and to that point, though, Dan, about them broadening the customer base, like, do they need to? I mean, their ARPU for US users was $0.40 above expectations. And I think someone on Twitter, I think it was Adam [? Singer ?] on Twitter yesterday, saying, well, you know, look, you never bet against Midwestern moms. And that's essentially what you'd be betting against if you didn't love everything that Pinterest is doing.

And I mean, that's a stock that's done incredibly well. And I think that that basic thesis, yeah, sure, it's maybe a little specious, but at least for Pinterest, it has held in pretty well. All right, let's move our attention now to what's happening with the ifys, that'd be Shopify and Spotify. We'll start with Shopify is a company that kind of was doing its own thing, hanging out in Canada, running a nice little business, and then became the hottest thing in all of the business press.

The stock, of course, has been on an absolute heater this year and really over the last two. I mean, it was $100 stock at the beginning of 2019, give or take, maybe 120. And now it's a 990 bucks per share. Now, shares are off about 3.5% today. But with the company coming out and kind of beating expectations across the board and doing everything that I think Shopify says it wants to do, which is increase the GDP of the internet, it kind of just is what it is, Melody.

And I think this has been an interesting story to follow as everyone figures out exactly, I guess, what Shopify does. And it's not surprising the stock is ho hum today. But I don't think anybody who saw the results or heard the call thinks anything other than what they thought about Shopify before, which is this thing's up and to the right.

MELODY HAHM: Yeah, and just some numbers here. Shopify did see 30.9 billion bucks in gross merchandise volume, of course, GMV is the sales number to track with any e-commerce platform. That's up about 109% from a year ago. As you mentioned, I think the story is pretty clear, right? Those who know what Shopify is, who understand that there is the back end that needs to power all of our online purchases, it's a no-brainer that this sort of a company would be thriving during this time.

I also want to point out that, this week, Shopify announced a partnership with TikTok. So all of the transactions internally with the TikTok platform will be powered by Shopify. So that 100 million number of TikTok subscribers of users every month, if Shopify is their natural platform, if they're getting the younger customer, if this isn't just powering these mom and pop shops that are in, quote unquote, "middle America," if it's kind of every corner of the universe, then of course, the potential TAM here can only grow a bit larger.

So I do anticipate that a lot of these additional collaborations as Shopify becomes the platform to go to for a comprehensive 360 sort of approach for small businesses, I do think the pie is sort of unlimited as you look forward.

DAN ROBERTS: And guys, I just had a quick thought on Shopify as well. Some of, you know, I spent a couple days earlier this week in a Wharton business journalist seminar. So it was interesting. One of the professors there, Mauro Gillen, who's actually been on this program quite recently promoting his book about what things are going to look like in business in 2030 after the pandemic, he highlighted Shopify as recent success, and especially its stock run as an example of one of the companies that has benefited during the pandemic by helping small businesses digitize.

And in fact, when he was saying that, I thought, wait a minute, there was something else I wrote recently, but it wasn't about Shopify, it was Square. So I looked up those two names, now, of course, this was before Shopify's earnings, Shopify and Square, both of which cater to small businesses, that's their bread and butter, both, now again, this was a day ago, before Shopify's earnings, up at the exact same amount since the start of 2020. 128% their stocks were.

And it's interesting because you might think that companies who really rely on small businesses would have been hammered during the pandemic because so many small businesses were hammered by the pandemic. But instead, helping many of those small businesses digitize and really optimize for e-commerce, because I think a lot of people forget, so many SMBs really have not digitized and really have not embraced the internet still, still they were in hindsight, maybe a little asleep on that.

And these are businesses that help them do that. So I think the future very bright for Shopify and also for Square.

MYLES UDLAND: And I should correct myself, increasing the GDP of the internet is Stripe's phrase. Shopify wants to arm the rebels. Though, again, I think, in a cool tech pro circles, they're basically the same company. You can interchange bull cases on Shopify and Stripe with one another. Everyone thinks they're just two of the greatest things that have ever happened in the tech space.

I just want to quickly finish up, talk a bit about what's happening over with shares of Spotify. That stock down about 3% today, the company reporting better than expected numbers on user growth. More of their users are listening to podcasts, and that, of course, brings us just very quickly to what's happening with Joe Rogan over there. Earlier this week, he had Alex Jones, the conspiracy theorist, on his program.

I think it's the third or fourth time that Jones has been on Rogan's show, but the first time since Rogan came over to Spotify exclusively. There was a lot of controversy around those old Alex Jones episodes being scrubbed from the Rogan archive. This one remains on the stream. Daniel Ek, the CEO of Spotify, saying on the company's call that he's not concerned about the controversy.

Rich Greenfield, friend of the program, asked him that question, and he said, simply, we review all the content that goes up. It doesn't matter if you're Joe Rogan or anyone else. We apply those policies. And so essentially, what went on on that show is fine with Spotify. And it's kind of the position I think we would expect them to take. They made a huge investment in Joe Rogan.

And I think you have to take Joe Rogan as he is if you want that partnership to work. And so again, that came up a couple times elsewhere. Ek saying that the performance of that particular podcast stream has, quote, "exceeded expectations." So a story I'm sure we'll be following in the quarters ahead.