Connect with us

PINTEREST

9 Tech Stocks to Buy Under a Biden Presidency

Published

on

Bank of America has high hopes for these tech stocks.

Tech stocks have led the stock market higher for more than a decade. However, some investors are growing concerned that President Joe Biden and a Democrat-controlled Congress could be bad news for big tech companies. Democrats have historically pushed for more corporate regulation to protect consumers, which puts big tech companies in the crosshairs of any antitrust or data abuse crackdowns. Regardless of regulatory concerns, the Bank of America analyst team says there are plenty of great investing opportunities within the technology space in 2021. Here are its top nine internet stock picks as the Biden era begins.

Alphabet (ticker: GOOGL)

A more harsh regulatory environment could be particularly difficult for the so-called FAANG stocks, Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Netflix (NFLX) and Google parent company Alphabet. However, analyst Justin Post says Alphabet is his top 2021 stock pick within the FAANG group. Post says Alphabet’s leading search technology, its Android mobile operating system and its YouTube streaming video platform are a powerful combination. In addition, Google’s Waymo subsidiary recently became the first company to offer fully autonomous vehicle services to the public. Bank of America has a “buy” rating and $2,150 price target for GOOGL stock.

Expedia Group (EXPE)

The travel industry was crushed in 2020, but Post says online travel giant Expedia is the best-positioned internet travel stock to benefit from a widespread economic reopening in 2021. Post prefers online travel stocks to e-commerce stocks in 2021. He is expecting a sharp rebound in travel bookings in the second half of the year while e-commerce sales growth slows. He is projecting earnings multiple expansion for online travel stocks in 2021, similar to the type of multiple expansion e-commerce stocks experienced in 2020. Bank of America has a “buy” rating and $153 price target for EXPE stock.

Vroom (VRM)

Analyst Nat Schindler says online auto retailer Vroom is the best-positioned small-cap internet stock for a 2021 economic reopening scenario. Schindler is bullish on the online auto market, which he says is extremely large and fragmented at this point. Online auto sales market penetration is small at only about 0.9% as of 2019 compared with 15% penetration for e-commerce as a whole. Schindler says Vroom is still in the nascent stages of its expansion opportunity, and the stock is well-positioned for long-term upside. Bank of America has a “buy” rating and $65 price target for VRM stock.

Uber Technologies (UBER)

Uber Technologies is a leader in the ride-hailing and food delivery markets. Post says Uber’s core ride-hailing business is well-positioned for a major rebound in 2021, while its Uber Eats food delivery business could take a hit as the economy opens back up fully. In December, Uber completed a $2.65 billion all-stock acquisition of food delivery giant Postmates, which Post says will be a significant revenue contributor in 2021. Uber also took a 26% stake in autonomous vehicle company Aurora Innovation in December. Bank of America has a “buy” rating and $66 price target for UBER stock.

Twitter (TWTR)

Social media giant Twitter has had a controversial couple of months, culminating with a permanent ban of former President Donald Trump from its platform in January. Looking ahead, Post says Twitter will likely continue to face headline risk related to its platform’s content, but the stock could get a tremendous tailwind from the return of major events, including possibly the 2021 Tokyo Olympics. Post says Trump’s ban highlights Twitter’s content risks, but much of the potential content problems and regulatory risks are already priced into the stock. Bank of America has a “buy” rating and $58 price target for TWTR stock.

Amazon.com (AMZN)

Amazon is the U.S. leader in e-commerce and cloud services. While Amazon faces regulatory risks, Post is bullish on the company’s long-term penetration opportunity in both its cloud business and online retail business. Post says Amazon faces difficult year-over-year comparisons in 2021 given its businesses benefited from social distancing, but e-commerce penetration is still relatively low and Amazon has been ramping up its fulfillment capacity. In addition, the health crisis merely accelerated an inevitable shift in the economy to a cloud-based business environment. Bank of America has a “buy” rating and $4,000 price target for AMZN stock.

Peloton Interactive (PTON)

Interactive fitness platform Peloton Interactive was one of the biggest winners from the social distancing environment in 2020. The stock is up more than 430% in the past year, so investors are concerned about how much additional upside they can expect as the economy reopens in 2021. However, Post says Peloton is a long-term market penetration story, similar to Amazon. Post says Peloton bike demand remains “robust” heading into 2021, while the upcoming launch of a new Tread product expected in the March quarter could be the next bullish catalyst for the stock. Bank of America has a “buy” rating and $175 price target for PTON stock.

Snap (SNAP)

Social media platform Snap significantly outperformed competitors Facebook and Twitter in the past year, gaining about 180%. However, Post says Snap is one of his top average revenue per user, or ARPU, and margin expansion investments in the internet stock group. Post says he is bullish on Snap’s unique, younger demographic, which is attractive to advertisers. In addition, he says the platform’s high engagement and long-term ARPU expansion opportunity are compelling. Post is projecting revenue growth will accelerate from 42.5% in 2020 to 48.1% in 2021. Bank of America has a “buy” rating and $55 price target for SNAP stock.

Pinterest (PINS)

Post says social media platform Pinterest will face difficult year-over-year comparisons in 2021 given it was a social distancing winner in 2020. However, he says Pinterest has long-term ARPU and margin growth opportunities that can drive its valuation higher. Post estimates fourth-quarter advertising revenue growth was 60%, significantly higher than Snap’s growth rate of up to 50%. Post also estimates Pinterest generated 61% revenue growth in the quarter. He says user growth, shopping features and a strong product pipeline justify a higher valuation for Pinterest. Bank of America has a “buy” rating and $72 price target for PINS stock.

Tech stocks for a new administration:

— Alphabet (GOOGL)

— Expedia Group (EXPE)

— Vroom (VRM)

— Uber Technologies (UBER)

— Twitter (TWTR)

— Amazon.com (AMZN)

— Peloton Interactive (PTON)

— Snap (SNAP)

— Pinterest (PINS)

Read More

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PINTEREST

3 High-Growth Stocks That Are Just Getting Started

Published

on

If you think these explosive stocks are going to slow down, think again.

Parkev Tatevosian

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.


Follow @TMFParkev

Growth stocks are usually companies that are growing sales and earnings faster than the market or industry. Some are taking advantage of a growing trend and others may be taking market share from existing businesses. In either case, they can deliver fantastic gains for investors.

Chegg (NYSE:CHGG), DraftKings (NASDAQ:DKNG), and Pinterest (NYSE:PINS) are three growth stocks that have a long runway ahead of them. Each is only beginning to tap the market opportunity in front of them. 

Chegg is positioning itself to benefit from what it says is the inevitable shift to online learning. DraftKings is a leading player in an expanding daily fantasy sports market and is expanding its products as states become friendlier toward online sports wagering. And Pinterest is benefiting from the increasing advertising that is allocated to digital formats. Here is why these three growth stocks can continue increasing revenue and customers for several years. 

A woman writing in a notebook outdoors.

Image source: Getty Images.

Chegg 

Chegg is a leading online student learning platform that helps students study for college courses. It generates revenue mostly by selling its Chegg Study subscription, which for $14.95 per month gives students access to step-by-step solutions to problems found in over 35,000 textbooks. That’s a substantial increase from the roughly 400 titles that were available 10 years ago. As you can imagine, the more titles available, the better the value for students. 

Indeed, an increasing share of students are finding Chegg’s services helpful in their pursuit of education. At the end of 2020, Chegg had 6.6 million paying subscribers, which was 67% higher than the amount it had a year ago. Still, management thinks it has a long way to go as it estimates the market opportunity is 102 million students that can benefit from Chegg’s services.

Already, the rapid growth in customers is leading to an acceleration in revenue growth from 25.9% in 2018 to 56.8% in 2020. Moreover, Chegg is investing in technology to reduce account sharing (multiple students that use the same account) and encourage international growth, where it expects to surpass 1 million subscribers in 2021. Both could be catalysts that sustain growth even longer.

DraftKings 

DraftKings is a platform that offers online sports betting, iGaming, and daily fantasy sports. The company is benefiting from a wave of regulations across several states that make more of its services available to consumers. Still, the company’s online sports betting service is only available to 20% of the U.S. population. That creates the potential for DraftKings to grow further as more states allow it to offer services to its constituents.  

Sentiment toward the legalization of online gambling activities is becoming more favorable as states are searching for ways to increase tax revenue. That trend is further fueled by the fact that the coronavirus pandemic, and ensuing business closures, are leading to decreasing revenue in some states. Politicians find that the public would react more favorably to the expansion of online gaming activities than increasing personal income taxes.

Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992, 21 states representing roughly 40% of the U.S. population have legalized sports betting. It takes time between when a state legalizes the activity and when an entity can offer it to the public. DraftKings now offers online sports betting in 10 of the 21 states where it’s legal.

In the most recent quarter, revenue and monthly unique players increased by 42% and 62%, respectively, from the previous year. Those figures are poised to grow as it expands to additional localities.  

Three young adults at a bar watching sports and celebrating.

Image source: Getty Images.

Pinterest 

Pinterest has only been a public company for a few short years and has a $54 billion market cap. Compare that to Facebook‘s market cap of $764 billion, add in all the catalysts that can help Pinterest realize its potential, and it’s not too hard to see a profitable future for the up-and-coming social media platform.

Pinterest’s visual search engine increased monthly active users (MAUs) to 459 million, which was 37% higher than in the previous year. It’s a long way away from Facebook, which has 3.3 billion MAUs across its family of apps. The vast difference could be an opportunity for Pinterest in the coming years.

Moreover, Pinterest generates an average revenue per user of $1.57, which is significantly lower than Facebook’s ARPU of $8.62. Pinterest is investing in its monetizing capabilities, and as it builds those out, it could narrow the gap.

In addition to taking market share, Pinterest can benefit from the digital advertising industry’s growth. One estimate says that in the U.S., it will grow from $132 billion in 2019 to $243 billion in 2024. 

Overall, these three growth stocks have the potential to continue increasing revenue and customers for multiple years. Investors looking for high-growth stocks with a favorable outlook can add Chegg, DraftKings, and Pinterest to their lists. 


Parkev Tatevosian owns shares of Facebook and Pinterest. The Motley Fool owns shares of and recommends Facebook and Pinterest. The Motley Fool recommends Chegg. The Motley Fool has a disclosure policy.

“>

Read More

Continue Reading

PINTEREST

Shopify-TikTok Social Commerce Pact Expands, Spurring Facebook, Pinterest In Social Sales

Published

on

You don’t have to read tea leaves or master divination to see that social commerce is heating up as a huge payments trend this year. Social commerce combines embedded and contextual payments with relevant content that’s proven to increase sales within a (mostly) seamless CX.

Action is getting intense, with Adweek reporting that the Shopify pact with TikTok struck last October is expanding to 14 more countries in North America, Europe, the Middle East and Asia.

Per Adweek, “The expansion of TikTok’s Shopify channel to a global audience — which now includes Australia, Canada, the U.K, France, Germany, Italy, Spain, Israel, Indonesia, Japan, Malaysia, South Korea, Thailand and Vietnam — gives even more merchants access to … self-service tools to be discovered by TikTok users and to optimize their marketing campaigns.”

With the Biden administration lowering the volume on talk of TikTok bans, there’s a “before the gold rush” electricity in the air as other social giants pile in, including embattled Facebook.

Recall that in July 2020 over 1,000 advertisers joined in an advertising boycott of Facebook. Investor news site Seeking Alpha recently reported, “Facebook’s top 100 advertisers spent 30 million USD less in July 2020 than the corresponding period in 2019. While it is difficult to separate the effect of the boycott from the effect of the pandemic, it appears that advertising spend on Facebook was reduced by tens of millions of dollars” for full-year 2020.

Which then begs the question: can social commerce make up for — and perhaps even surpass — falling ad revenue with fees and a hefty slice of the social commerce pie? That’s an unknown as the end of Q1 2021 looms, and social selling starts taking flight in a serious way worldwide.

Social Commerce Skirmishes

As news of the Shopify-TikTok expansion hit, so did Facebook’s announcement that it too is doubling down on social commerce with new features for the contextual shopper.

Trade news site InternetRetailing reported in late February about Facebook’s new “Shop”  feature, available in the U.K. and Canada, and “allowing retailers to sell on its platform and to integrate selling from Instagram too.”

Per that reporting, Facebook Shop allows retailers “to create a single online selling presence on the platform and to sell from user’s feeds. It also will be closely allied to the company’s other social media selling tools on Instagram, which it launched last year,” adding that Facebook is also connecting to loyalty programs and will be adding shoppable product tags to videos.

Not to be left out — and maybe even a bit ahead of the curve — is Pinterest, whose stock “continues to perform strongly due to continued user growth and improving monetization of users,” Seeking Alpha said, adding, “Pinterest will likely end up with a much larger user base than Twitter or Snapchat, probably comparable to Instagram or TikTok, and the platform is a close fit for social commerce.”

Pinterest is making its platform more shoppable, with innovations like “Product Pins” enhanced with metadata and designed to move merchandise.

It’s Anybody’s Race Right Now, But Favorites Are Emerging

There’s another story afoot here, and it’s the recent Amazon purchase of Selz, the Australian eCommerce startup. Many see that acquisition as Amazon’s response to rivals Shopify-TikTok and Pinterest in helping small and medium-sized businesses (SMBs) primarily get up to speed with marketplace and social selling.

As PYMNTS reported at the time of the Selz acquisition, “There are reasons to believe that in some respects, Shopify enters this race with a bit of an edge on Amazon. As New York Times contributor Yiren Lu observed in November of 2o20, ‘if the key to Amazon’s success has been to put the customer first, for Shopify, the key has been to put the merchant first.’”

If Shopify and TikTok are setting the bar at the moment — and it appears they are — then expect copycats and emulators to follow in the path the two are blazing.

Read More On Retail:

Read More

Continue Reading

PINTEREST

Social Commerce Market 2021 Ongoing Trend with Most Demanding Players as Etsy, Facebook …

Published

on

In-depth study of the Global Social Commerce Industry that helps to provide answers and relevant questions regarding the Emerging trends and Growth opportunities. It helps identify each of the major growth barriers aside from identifying the trends in the Social Commerce market.

Social commerce is a part of e-commerce, and refers to buying & selling activities that take place specifically on social media platforms. Social commerce includes local as well as worldwide marketplaces that comprise small & large businesses selling their products to various social media followers and individual buyers.

Rapid growth in social media and e-commerce expected to drive the global social commerce market. Moreover, growing adoption of social media advertising is anticipated to boost the demand for social commerce market.

Get Sample Copy of this Report @ https://www.theinsightpartners.com/sample/TIPRE00019496/

The reports cover key developments in the Social Commerce market as organic and inorganic growth strategies. Various companies are focusing on organic growth strategies such as product launches, product approvals and others such as patents and events. Inorganic growth strategies activities witnessed in the market were acquisitions, and partnership & collaborations. These activities have paved way for expansion of business and customer base of market players. The market payers from Social Commerce market are anticipated to lucrative growth opportunities in the future with the rising demand for Social Commerce market in the global market.

Key Players Influencing the Market

  • Etsy, Inc.
  • Facebook
  • PayPal Payments Private Limited
  • Pinterest
  • Poshmark, Inc.
  • Reddit Inc.
  • SINA Corp.
  • Taobao (Alibaba.com)
  • Twitter, Inc.

The “Global Social Commerce Market Analysis to 2027” is a specialized and in-depth study of the technology, media and telecommunications industry with a special focus on the global market trend analysis. The report aims to provide an overview of Social Commerce market with detailed market segmentation by component, deployment type, industry vertical, and geography. The global Social Commerce market is expected to witness high growth during the forecast period. The report provides key statistics on the market status of the leading Social Commerce market players and offers key trends and opportunities in the market.

The global social commerce market is segmented on the basis of business model, device type, end user. On the basis of business model, market is segmented as B2B, B2C, C2C. On the basis of device type, market is segmented as smartphone, laptop, tablets. On the basis of end user, market is segmented as individual, commercial

Besides this, the report analyzes factors affecting Social Commerce market from both demand and supply side and further evaluates market dynamics affecting the market during the forecast period i.e., drivers, restraints, opportunities, and future trend. The report also provides exhaustive PEST analysis for all five regions considered in the Global Social Commerce Market report.

The report provides a detailed overview of the industry including both qualitative and quantitative information. It provides an overview and forecast of the global Social Commerce market based on the type and application. It also provides market size and forecast till 2027 for overall Social Commerce market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South America (SAM). The market by each region is later sub-segmented by respective countries and segments. The report covers the analysis and forecast of 18 countries globally along with the current trend and opportunities prevailing in the region.

Place a Purchase Order to Buy a Complete Copy of this Report @ https://www.theinsightpartners.com/buy/TIPRE00019496/

Answers that the report acknowledges:

  • Market size and growth rate during forecast period.
  • Key factors driving the Social Commerce Market.
  • Key market trends cracking up the growth of the Social Commerce Market.
  • Challenges to market growth.
  • Key vendors of Social Commerce Market.
  • Detailed SWOT analysis.
  • Opportunities and threats faces by the existing vendors in Global Social Commerce Market.
  • Trending factors influencing the market in the geographical regions.
  • Strategic initiatives focusing the leading vendors.
  • PEST analysis of the market in the five major regions.

About Us:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Healthcare, Manufacturing, Automotive and Defense.

Contact Us:

533, 5th Floor, Amanora Chambers,

Amanora Township, East Block,

Kharadi Road, Hadapsar, Pune-411028

Call: +1-646-491-9876

Email: sales@theinsightpartners.com

Read More

Continue Reading

Trending