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Pinterest Is a Unique Diamond in the Social Media Jewel Collection

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Social-media stocks have blossomed over the past year as the pandemic forced the world to communicate virtually. Snap’s (NYSE: SNAP) shares have more than doubled over the past four months, besting both Twitter (NYSE: TWTR) and Facebook (NASDAQ: FB) during the news-heavy election season. The online product and idea discovery platform platform Pinterest (NYSE: PINS) has blossomed into an e-commerce destination that ended up being among the biggest pandemic winners as its shares have roughly quadrupled since the beginning of last year.

Outperforming peers

Last Friday, Citigroup (NYSE:C) raised its price target as it was impressed with the company’s recent fourth-quarter earnings results and superior business growth momentum. Over the past year, Pinterest grew its sales 48% which is twice as fast as Facebook, according to data from S&P Global Market Intelligence. Moreover, data also shows Pinterest has been outgrowing Facebook over the past two- and three-year periods.

Pinterest’s lack of controversy is its main strength

Unlike Facebook and Twitter that have been surrounded by controversy for the better part of the last eight months, with Facebook even having to face an advertiser boycotts, Pinterest ended up being a “safe” place. It’s almost impossible to infuriate tens of millions of people with cooking recipes and just pretty visual boards. The social media giants seem like they are going to be fine in the long run, but Pinterest’s squeaky-clean reputation is pure gold that could fuel its ARPU over the long-run.

The best is yet to come

The image-based social network smashed fourth quarter revenue and earnings estimates last week. With 76% YoYgrowth, revenue amounted to $705.6 million, greatly exceeding analyst consensus at $645.6 million. But its bottom-line growth was even more impressive as adjusted net income nearly quadrupled to $294.3 million, resulting in aprofit margin of 42% and per share adjusted earnings of $0.43, beating average estimates of $0.32.

The monthly active user base rose 37% over the past year as Pinterest gathered 459 million Pinners. Based on fourth quarter’s momentum, Pinterest’s business is on fire with its price more than tripled over the last year and the performance smashing the company’s own guidance over several consecutive quarters.

It is unique and it is positive

Pinners come to Pinterest to work on themselves, rather than connect with other people and that means this social ‘network’ has a different mission than others that exist to connect people. The platform is focused on inspiring Pinners which generally makes it a positive place, free of trolls or hate speech. Pinterest also doesn’t allow political advertising and downplays political content, helping avoid much of the controversy that’s swirled around Facebook and Twitter.

All of this makes Pinterest a unique platform and despite the intense competition in digital advertising, Pinterest hasa competitive advantages that solidifies its position as a leader in image-based social interaction.

It has an outstanding business model

The latest results offer an alluring example of what can Pinterest’s future look like at scale. Not many businesses can deliver profit margins of 42%, but that is the beauty of the digital advertising model. The costs to build and maintain the platform are relatively fixed as users generate the content. As ad spending power grows, margins will widen because its users actually want to see ads since they often come to the site to look for inspiration on what to buy. That characteristic makes Pinterest appealing to advertisers and distinguishes it from other social media platforms where ads disrupt the user experience.

Facebook may offer the best example of the power of the digital advertising model at scale , so there’s plenty of room for the much smaller Pinterest to grow both its the top and bottom lines if it can execute its strategy.

It is committed to constantly improving

One of the reasons that Pinterest was so successful last year is because it launched new products like automatic bidding on ads, shopping ads, and story pins. There are many new features in store for 2021 as the company plans on enriching the Pinner experience by investing in video and building a creator ecosystem.

Pinterest also cares for advertisers, so it aims to make it easier for them to succeed on the platform by improving performance-measuring capabilities and expanding sales coverage to all types of advertisers. The idea is to makePinterest more shoppable by having businesses list their products on the platform.

The point is that Pinterest just begun monetizing its international business outside the U.S., and that is where the majority of its Pinners are.  The latest quarter saw strong growth in Western Europe and its ad product will be launched in Latin America in the first half of this year.

In the fourth quarter, ARPU was $1.57, which is up 29% from the year before. Facebook’s ARPU for the quarter was nearly seven times higher so there’s plenty of space to run as Pinterest introduces more advertising products and builds its ad base.

Outlook

Over the coming years, Pinterest’s business should only get better as there is massive monetization potential. With its appeal to advertisers, its positive social environment, growth momentum, and unique position in the world of social media, the idea platform is moving in the right direction. The fact that its shares are up just modestly since the fourth-quarter earnings report means that high expectations are already priced into the stock.

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

Coca Cola Confirms Its World’s Beloved Brand Status

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For more than a century, The Coca-Cola Company (NYSE: KO) has been “refreshing the world in mind, body, and spirit”. The company aims to inspire moments of optimism, to create value and make a difference.

On Wednesday, the beverage giant revealed second-quarter earnings and revenue that beat Wall Street’s expectations, allowing it to raise its full year forecast for adjusted earnings per share and organic revenue growth. Most importantly, some markets rebounded from the pandemic, fueling revenue to surpass 2019 levels. Shares rose more than 2% in morning trading.

Q2 figures

Net income rose from $1.78 billion as it amounted to $2.64 billion. It resulted in adjusted earnings per share of 68 cents, exceeding the expected 56 cents. Net sales rose 42% with revenue of $10.13 billion that also exceeded the expected $9.32 billion. Excluding acquisitions and foreign currency, organic revenue rose 37% compared to last year’s biggest plunge in quarterly revenue in at least three decades due to lockdowns that severely dented demand.

A significant increase in marketing and advertising spend fueled the rebound but Coca Cola’s approach isn’t just about boosting spend, but also about increasing the efficiency of that spend. CFO John Murphy revealed that marketing dollars were doubled compared to last year’s quarter, when the pandemic forced the beverage giant to slash its costs to preserve cash.

Unit performance

All drink segments reported double-digit volume growth. Away-from-home channels, like restaurants and movie theaters, were rebounding in some markets, like China and Nigeria, but there are also markets that are still being heavily pressured by the pandemic such as India.

The department that contains its flagship soda saw volume increase by 14% in the quarter. The nutrition, juice, dairy and plant-based beverage business saw a volume growth of 25%, partly fueled by Minute Maid and Fairlife milk sales in North America. The same volume growth was seen by hydration, sports, coffee and tea segment. Costa cafes in the United Kingdom reopened and drove 78% increase in volume for coffee alone.

The risk of raising commodity prices

Like its F&B peers, Coke is facing higher commodity prices but it plans to raise prices and use productivity levers to manage the volatility in the second half of the year.

Outlook

For the full year, Coke improved its organic revenue growth outlook from high-single digit growth to a range of 12% to 14%. It also raised its forecast for adjusted earnings per share growth from high single digits to a low double digits range of 13% to 15%.

Putting it all together, executives emphasized the range of possible outcomes given the asynchronous recovery and dynamic of the pandemic. Coca Cola plans to build on the strong momentum by intensifying the amount and efficacy of promotions and continuing to innovate, what it does better than anyone and what helped it earn its brand status.

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

Automakers Are Hitting the Accelerator in the EV Race

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On Thursday, Daimler AG (OTC: DDAIF) has officially hit the accelerator in the e-car race with Tesla (NASDAQ: TSLA), revealing it will invest more than 40 billion euros in EVs by 2030. From 2025, three new vehicle platforms will only make battery-powered vehicles. One will cover passenger cars and SUVs, one will be devoted to vans and last but not least, the third will be home to high-performance vehicles that will be launched in 2025. Under its EV strategy, the inventor of the modern motor car will be renamed Mercedes-Benz as it spins off its trucks division by the end of the year. With its partners, it will build eight battery plants to ramp up EV production.

Upon the news that come just over a week after the EU proposed an effective ban on the sale of new petrol and diesel cars from 2035, shares rose 2.5%.

Automotive peers

Ahead of the EU’s announcement that is only part of a broad strategy to combat global warming, many automakers announced major investments in EVs. Earlier this month, Stellantis (NYSE: STLA) revealed its own EV strategy that includes investing more than 30 billion euros by 2025. Mercedes Benz isn’t the only one ‘going for it’ to be dominantly, if not all electric, by the end of the decade. Geely Automobile Holdings Limited’s (OTC: GELYF) Volvo Cars committed to going all electric by 2030, while General Motors Co (NYSE: GM) is aiming to be fully electric by 2035 and Volkswagen AG (OTC: VWAGY) even plans to build half a dozen battery cell plants in Europe.

Moving the debate

Daimler’s chief executive stated that  spending on ICE-related technology will be “close to zero” by 2025 but he did not specify when it will end the sales of fossil fuel-powered cars. Källenius wants to move the debate away from when will the last combustion engine be built to how quickly they can scale up to being close to 100% electric.

Tough decisions for Mercedes Benz

The undergoing shift will result in an 80% drop in investments in ICE vehicles between 2019 and 2026. This will have a direct impact on jobs because EVs have fewer components and so require fewer workers compared to their ICE counterparts. As of 2025, Daimler expects EVs and hybrids will make up half of its sales, with all-electric cars expected to account for most that figure, which is earlier than its previous forecast for 2030.

The battery- the Holly Grail

By 2023, Daimler plans to have a fully operational battery recycling plant in Germany. The industry leader Tesla just signed a deal with the world’s largest nickel miner to secure its battery resources as it prepares to begin its own tables battery in-house. Then there’s Worksport (OTC: WKSP) who will bring solar power to the EV table with its solar fusion TerraVis which will be fine-tuned and validated for prelaunch by the end of 2021. Although the first prototype is a solar-powered tonneau cover for pickup truck drivers, the company is also developing TerraVis COR which is a standalone product that offers remote power generation and storage. In other words, with its two-year partnership with Ontario Tech University, Worksport is fully equipped to power many automakers step into the electrification era.

The EV race is a journey like no other we have witnessed – and the participants are going full-speed ahead as they race to reshape the energy matrix of automotive industry.

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

Intel’s Q2 Results Show It Is Not Losing Focus

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Intel Corporation (NASDAQ: INTC) revealed its second-quarter 2021 financial results yesterday. The digitization transformation and switching to cloud services continue to accelerate, and a company like Intel sees that as the opportunity for an even bigger growth. Even with the current semiconductor shortage, Intel is not losing its focus on both innovations and the implementation of new solutions. The company’s CEO, Pat Gelsinger, appointed earlier in 2021, believes we are at the beginning of the semiconductor industry’s decade of sustained growth and that Intel has a unique position to capitalize on that trend. As the momentum is strengthening, execution is increasing, the company’s products are being chosen for top and flagship products. We can also see good results in other companies in the semiconductor business, like Texas Instruments Incorporated (NASDAQ: TXN) and Advanced Micro Devices, Inc. (NASDAQ: AMD).

 Second-quarter results

Intel’s second-quarter results are positive and the proof of the momentum building up, as mentioned by Gelsinger. GAAP revenues for Q2 were $19.6 billion, significantly higher than the expected $17.8 billion, and there was no change when looking back year over year. However, non-GAAP revenues were $18.5 billion, exceeding the April guidance by $700 million, and that is 2% up compared to the previous year. Intel’s Data Center Group (DCG) generated $6.5 billion compared to the expected $5.9 billion. Client computing generated the expected revenues of 9.95 billion, while the actual revenues were $10.1 billion. GAAP earnings per share were $1.24, while the non-GAAP EPS were $1.28, which also surpassed April’s guidance of $1.07.

 The good trend in the semiconductor industry

Another chipmaker, Dallas-based Texas Instruments, also reported Q2 earnings that topped the expectations. These good results were due to revenues growth and an increase in profits. The analysts expected revenues of $4.36 billion, and the company managed to generate $4.58 billion. That is a sales increase of 41% when looking year over year. Expected earnings per share were $2.05, while the analysts expected $1.83. However, the sales guidance for the current quarter was below the investors’ wishes, so the share price dropped upon the news.

 Outlook

As revenue, EPS, and gross margin exceeded the Q2 guidance, Intel raised its 2021 full-year guidance. So expected GAAP revenues are $77.6 billion and non-GAAP revenues are expected to amount to $73.5 billion (which is an increase of $1 billion), resulting in expected GAAP EPS of $4.09 and non-GAAP EPS of $4.80. Planned CAPEX is between $19 billion and $20 billion and free cash flow should be $11 billion, which is an increase of $500 million versus prior expectations. Gelsinger estimates that the semiconductor shortage will start loosening in the second half of the year, but it will take another one to two years until the demand is completely met.

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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