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BenzingaEditorial

5 Social Media Stocks Poised for Post-Pandemic Success

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Facebook Earnings News

The rise of social media over the past decade has been swift and very rewarding for early investors. As social media companies find innovative new ways to gather, use, and sell the information its users provide on a daily basis, this data has become the new currency.

Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) have developed into veteran social media stocks with established trading histories, but it doesn’t mean other platforms are less worthy. The pandemic has brought them all both positives, such as skyrocketing engagement because of the lockdowns) as well as negatives in the form of reduced ad spending. But, each one of them is attractive in their own way.

Facebook

Facebook remains the gorilla of social media stocks with a market cap of $700 billion. To give you a better idea, it is several multiples larger than Twitter, Pinterest (NYSE:PINS).

, and Snap (NYSE:SNAP) combined. The July’s ad boycott came and went, leaving Facebook almost unharmed. Giants such as Pfizer (NYSE: PFE), Novartis (NYSE: NVS) and AbbVie (NYSE: ABBV) came back. But some are still on pause such as Unilever, one of the world’s biggest advertisers as well as the almighty Coca Cola (NYSE: KO). Did the initiative to pressure the platform to make changes against hate speech work remains to be seen as Facebook agreed to a hate speech Audis. Its progress will be closely monitored by brands.

Its sites gather over 2.7 billion monthly active users, with an average of 1.79 billion being active on a daily basis.Moreover, Facebook is not leaving growth to chance as it moving into Virtual Reality in which it gained a first-mover advantage and achieved a year-over-year increase in non-ad revenue. Grand View Research forecasted that the VR industry will expand at CAGR of 21.6% until 2027.

Therefore, Facebook is on the right growth path. Revenue increased 11% from year-ago levels in its latest quarter and quarterly earnings of $1.80 per diluted share nearly doubled to that of previous year.

Twitter

Despite Facebook’s power, it has not taken Twitter’s place in the microblogging universe. Twitter has become a forum for all kinds of celebrities, ranging from entertainment to politics. But, Twitter is struggling for attention and with a market cap of just over $31 billion, its size remains small.

Twitter’s daily active users expanded 34% to 186 million compared to the same quarter last year but its revenue was severely hit by the pandemic. It dropped 19% compared to the same quarter last year. Twitter delivered a loss of $1.56 per diluted share for its latest quarter, as opposed to a profit of $1.43 per share one year ago.

Twitter believes that through product improvements that helped in driving user engagement higher and an overhaul of its ad server it recently completed, it could boost its engagement further and retrieve profits.

Pinterest

Pinterest’s strength is found in loyal users and big e-commerce potential. Its virtual discovery platform is a true haven for brands to connect directly to consumers who visit the platform to create a ‘collage’ of products that fit their personal taste.

The picturesque platform has been holding strong since its Q2 earnings report in a market that has been showing weakness. Its greatest strength lies in its inspirational content that is not focused on politics or other controversial topics, protecting it against headline risk that other social media stocks are highly exposed to. Moreover, its loyal userbase that use the platform for research or to make buying decisions implies a lot of growth potential both in e-commerce and advertising. All an investor has to do is be patient until the company gets better at monetizing its platform.

Snap

This is perhaps one of the most underrated social media stock. Its Snapchat users are extremely loyal as the userbase counts 238 average million Daily Active Users that create 4 billion snaps on a daily basis. Their engagement was confirmed in the second quarter, as they opened the app 30 times a day. Its Q2 results contained some impressive figures with 17% year-over-year increase in revenue and the number of daily active users. Although, these achievements didn’t find their way to the bottom line as Snapchat reported a loss, the company invested in growth and cashflow did improve. But, its greatest appeal lies in the younger demographic, allowing brands to directly access Generation Z. Like Facebook, it is investing on augmented reality and is launching new features.

Social media + one of the largest technology companies in China

Tencent Holdings Ltd’s (OTC:TCEHY) offers an investor with an exposure to four different business segments: social media, online gaming, digital advertising, and fintech, all of which continued to thrive throughout the pandemic. Its social media segment is impressive, with China’s top messaging platform WeChat and a social network QQ. WeChat reportedly has over 1.2 billion users while QQ has 659 million users. Both platforms are extremely popular in China, allowing Tencent to generate strong revenue through ads as its social network revenue increased 29% year-over-year during Q2. The only downside is related to trade tensions between the U.S. and China, as it could potentially be delisted from U.S. exchanges.

Outlook

With so many aspects of our lives shifting online, it makes sense that social media stocks appeal to investors, especially when their business model benefits from online advertising and e-commerce. However, 2020 has altered consumer behavior and brought increased social awareness. There is also the regulatory pressure to think about. For now, Facebook turned out to be the most immune to external shocks as it maintained its dominance, while expanding its business lines.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

Plugging Into the Future

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Tesla Electric Vehicles

BNEF predicts that by 2040 EV sales will rise to nearly 60% of the global auto market. That is quite a difference compared to 2010, when annual sales were close to zero. With consumer becoming more aware and conscious, along with favorable market forces that are gaining momentum, EVs are quickly becoming the future of the automotive industry with many EV companies showing massive growth potential.

e-tractors

Ideanomics (NASDAQ: IDEX). has acquired 15% of California-based Solectrac, Inc. for $1.3 million, its very first US-based OEM, Solectrac develops, assembles and distributes 100% battery-powered electric tractors for agriculture and utility operations. With this investment in Solectrac, Ideanomics expands its global footprint in the EV industry through specialty commercial vehicles. Moreover, Ideanomics gained a seat on Solectrac’s Board of Directors. This opportunity will give Ideanmoics access to the global agricultural tractor market that is poised for rapid growth, although currently valued at $75 billion. The time has come to say goodbye to diesel tractors.

Solar powered EVs

Besides recently forming an agreement with Atlis Motor Vehicles, Worksport (OTC: WKSP) has announced today to engage Thermal Technology Services Canada to test the Company’s groundbreaking TerraVis™ solar panel technology and increase its efficiency. Increases in product efficiency of even a few per cent can make all the difference when it comes to the performance of an electric vehicle. Each additional mile counts and Worksport is set to deliver the most advanced product with solar technology, from which the technologically advanced and eagerly-anticipated for Atlis XT electric pickup truck can greatly benefit.

Traditional automakers are not wasting any time

General Motors (NYSE: GM) revived the Hummer for the 2022 GMC Hummer EV, a fully electric truck that is expected to arrive in dealership next year. Last week, GM unveiled its “Factory Zero” as it gave a new life to its Detroit-Hamtramck assembly plant. The new GMC Hummer EV electric truck will be built in this all-electric factory, accompanied by the Cruise Origin, a self-driving EV designed by GM and Honda (NYSE: HMC). Last month, Ford (NYSE: F) also announced plans for a new factory at its large Rouge site in Dearborn, Michigan, that will build it’s the all-electric version of its legendary F-150 pickups.

New entrants are upping their game

Northeast Ohio-based Lordstown Motors (NASDAQ: RIDE), which purchased GM’s former Lordstown Assembly Complex and DiamondPeak Holdings Corp. (NASDAQ: DHPC), a special purpose acquisition company, completed a merger that makes the EV startup a publicly traded company, effective Monday. The deal gives Lordstown the financing it needs to start production of its electric Endurance truck. It aims to deliver its truck by next September, the same time Rivian Automotive Inc., Tesla Inc.(NASDAQ: TSLA) and General Motors Co. plan to launch their own electric truck candidates.

Outlook

On Thursday, during the last presidential debate, former Vice President Joe Biden pledged to shift the U.S. economy away from oil. This goal is impossible to reach without a wider EV adoption as road transport accounted for almost 70% of America’s oil consumption in 2019. Therefore, market forces and green government policies can only accelerate the EV revolution, both in the United States and around the world, with Europe already being well on that path. A cleaner tomorrow where we will no longer have to choose between performance, economy and environmental sustainability is well underway.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Solar Energy Is on Track To Become the New Energy King

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Solar Stocks and Corona Virus

When COVID-19 started its relentless march across the globe in March, there was some concern that it would put the solar industry to a halt. This fear was derived from the fact that residential solar sales are usually sold door-to-door as well as plant closures and increasing pandemic-related costs. But this scenario did not play out. In fact, the construction industry has been booming this year.

Innovation

The pandemic has also brought about some innovations that were a long time coming for solar energy. Residential solar companies were forced to adapt their sales to a digital framework. SunPower (NASDAQ:SPWR) is one of the leaders in this digital-first approach, but Tesla (NASDAQ:TSLA) has also caught this wave. Moreover, when it reported its earnings last week, the company revealed it is aiming for its solar business to be just as strong as its main star, the EV business. Elon Musk announced that Tesla’s next ‘killer product’ is its Solar Roof, and that everyone will see why next year. But even Sunrun (NASDAQ:RUN) is adapting to a new normal with fewer physical touchpoints so competition will be intense.

Improved profitability

At the end of the day, the reason solar stocks are up this year is the improved financial performance. Canadian Solar (NASDAQ:CSIQ), JinkoSolar (NYSE:JKS), SolarEdge (NASDAQ:SEDG), and Enphase Energy (NASDAQ:ENPH), four of the biggest equipment suppliers in the industry have remained strong during the pandemic, with some companies also seeing margins increase.

But this piece of good news is a result of the industry focusing more on specializing rather than vertically integrating. For example, SunPower has spun off its development business, inverter manufacturing, and its solar manufacturing arm which led it to better financial results and better margins almost across the board.

Politics

Considering that Joe Biden has taken a clear polling lead over Donald Trump, the boost of solar stocks is not a surprise. Biden’s strategy is much more focused on clean energy than Trump’s, despite not being supportive of the “Green New Deal”.  The overall perception is that Biden will be good for the industry.

Affordability

Solar power is already the cheapest source of electricity in some parts of the world, according to a new report released on October 13th by the International Energy Agency (IEA). This was greatly enabled by governmental policies in more than 130 countries that aim to encourage the rise of renewables by reducing the cost of building new solar installations.

Outlook

As solar technology continues to improve and innovation continues to drive those costs down, solar is on track to become “the new king of electricity supply”. With global efforts to put climate change under control, the solar industry is expected to dominate over the next decade. The EU alone has set a goal to source 32 percent of its energy from renewables by 2030, therefore, the forecast for solar is sunny.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Procter& Gamble Benefits From the Cleaning Boom

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Emerging Companies

On Tuesday, Procter & Gamble (NYSE: PG) managed to beat estimates and raised forecast amid strong demand for its household products. Its shares rose 2% in morning trading.

Key figures

Fiscal first-quarter sales rose 9% as the pandemic fuelled higher demand for cleaning and laundry products, exceeding the prior quarter’s 6% increase. Net sales amounted to $19.32 billion, topping expectations of $18.38 billion. Organic revenue, which strips out the impact of acquisitions, divestitures and foreign currency, also rose 9% in the quarter. This sales boost was enabled by stronger demand in P&G’s largest market, North America.

Sales growth resulted in a net income of $4.28 billion, or $1.63 per share. Not only is this figure higher than Refinitiv’s average of $1.42 per share, but it is also an improvement from last year’s $3.59 billion, or $1.36 per share, a year earlier.

Improved Forecast

Supported by these strong quarter results, P&G also raised its outlook for fiscal 2021. Overall sales growth is now expected in the range between 3% to 4%, up from its prior forecast of 1% to 3%. As for organic revenue, the forecasted range also improved from 2% to 4% to a new range between 4% and 5%. The outlook for its core earnings per share growth has also improved from prior forecast of 3% to 7%. While the early retirement of debt will reduce its net income up to 20 cents a share this fiscal year, core earnings per share are still forecasted to grow between 5% to 8%. As for the impact of after-tax foreign exchange impacts and freight costs, they are estimated to impact earnings at approximately $375 million.

The “antiseptic” cleaning boom

Although the laundry care and healthcare divisions were standout performers as consumers prioritized home cleaning spending, all of P&G’s five business segments enjoyed organic sales growth. Moreover, U.S. consumers did not opt for cheaper brands which was expected to the absence of a new stimulus package.

Fabric and home care, which includes Tide, saw the highest jump. Organic sales rose 14% in the quarter. The home care segment alone saw organic sales soar 30% due to a boost in demand for home cleaning products, like Mr. Clean.

Health care, which includes Oral-B,s saw a double-digit organic sales growth as more consumers bought its digestive and wellness products.

Its beauty segment saw organic sales growth of 7% with the launch of Safeguard hand soap and hand sanitizer as well as new products from Olay that lifted North American sales for skin and personal care. It’s already a known fact that skincare became the new “lipstick index” during the COVID-19 pandemic.

Organic sales for its grooming business rose 6% in the quarter. However, Gillette and Venus brands saw flat organic sales as men don’t appear to be shaving as much during the pandemic. But women’s razors and blades rose by single digits.

The company’s baby, health and family care segment reported organic sales growth of 4%, including Pampers diapers, paper towels and toilet paper.

Outlook

It didn’t take long for Procter & Gamble to leave its conservative fiscal 2021 outlook behind. As consumers spend more time in their households, watching TV and engaging with their social media profiles, P&G is putting more money into advertising to put its brands front and center. The overall image is that P&G’s strong results and growth were enabled by increase in sales volumes, but average prices also rose. P&G did a great job in catching the cleaning boom wave which is why the company expects only a modest slowdown from pandemic-influenced growth rates that result in spiking sales over the recent months.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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