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Pinterest and Tesla have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 2, 2024 – Zacks Equity Research sharesPinterest(PINS - Free Report) as the Bull of the Day and Tesla (TSLA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis onCoinbase Global, Inc. (COIN - Free Report) , Robinhood Markets, Inc. (HOOD - Free Report) , and NVIDIA Corp. (NVDA - Free Report) .
Pinterest became a Zacks #1 Rank in early April as analysts started to raise estimates ahead of their quarterly report this week.
Pinterest reported strong first-quarter 2024 results on Tuesday, with the bottom and top lines surpassing their respective Zacks Consensus Estimate.
The big story is that lots of architecture solutions for advertising and marketing technology are paying off and providing sustained ROI to sellers, such as bottom-of-funnel direct response ads and supporting ad-tech.
Several investment bank analysts were impressed by the quarter and management's ability to turn the levers of growth -- especially capitalizing on key relationships with Google and Amazon.
RBC Capital found that PINS' strong Q1 performance was driven by the effectiveness of direct links that resulted in increased advertiser spending due to improved return on ad spend.
"Direct Links is working, with advertisers spending more as they see better ROAS," said the RBC led by Brad Erickson.
"From here, we think Direct Links has only just begun enabling PINS's value-capture from higher conversions," they said, adding that Amazon and Google are open-ended contributors that have only just started.
Erickson also highlighted upcoming artificial intelligence (AI) measurement tools that could provide tailwinds for several years.
RBC raised their price target on PINS to $52 from $48 and reiterated their Outperform rating.
Goldman Sachs analyst Eric Sheridan liked the "very strong" results for Q1, and noted "broad-based upside."
"In many ways, we see this quarterly report as evidence of management progress across its mix of product initiatives (shoppable content, direct response/bottom-funnel ad budgets and partnerships aiding in wider scaled monetization)."
Sheridan maintained his Buy rating while raising his price target from $41 to $44 and he added that the company's partnerships with Amazon and Alphabet "are contributing revenue momentum that should continue to build throughout 2024."
JPMorgan analyst Doug Anmuth wrote that Pinterest "shifted into a higher gear of growth with broad-based strength across users & monetization."
Anmuth reiterated a Neutral rating while raising his price target from $38 to $44.
Wedbush analyst Scott Devitt wrote in a note to clients that the PINS results reflected "broad-based strength stemming from ongoing initiatives to improve monetization as well as healthy MAU (monthly active users) and engagement growth."
Devitt observed that Pinterest has started to benefit from the "ongoing adoption of lower funnel advertising tools and new ad surfaces, which are driving monetization improvements."
He maintained a Neutral rating while raising his price target from $38 to $44.
Piper Sandler analyst Thomas Champion wrote that while users accelerated across all geographies, with total MAUs of 512MM (+12% year-over-year), management referred to an "aging down" of the user base and rightly bragged that "Gen-Z now ~40%+ of the user base and growing fastest."
Champion reaffirmed an Overweight rating while lifting his price target from $48 to $50.
Bottom line on PINS: With 17% topline growth expected this year and next to cross $4 billion, PINS only trades at 6 times forward sales. Since it looks like estimates will continue to rise from here, I'd be a buyer of this stylish social-shopping platform that continues to innovate and attract new, and younger, users and advertisers.
Tesla became a Zacks #5 Rank again on April 12 when shares were still trading above $170 and estimates were still dropping ahead of the EV maker's Q1 report on Tuesday 4/23.
My colleague Shaun Pruitt described the situation in his April 15 article...
In the two months prior, the Zacks EPS Consensus fell over 20% from $3.44 to $2.73.
And next year plunged nearly 24% from $4.61 to $3.52.
These downward analyst revisions ahead of the company report cause TSLA shares to drop under $140 on Monday 4/22, the eve of judgment day.
But with the news on 4/23 the market seemed to breathe a collective sigh of relief that things were not worse than delivered.
While investors have been debating the company numbers, statements, and plans, here we'll just focus on why TSLA shares will remain in the cellar of the Zacks Rank.
Since the report, this year's EPS projection has fallen to $2.48, representing a 20% annual drop in profits.
Investors knew that Tesla was aggressively cutting the prices of its cars to gain a dominant position in the EV market.
What they might not have counted on was how hard it would be for the top maker to also cut costs.
What's Ahead
The faithful got a welcome surprise this past Monday when it was announced that China was ready to partner with Full-Self Driving (FSD) initiatives.
This shot TSLA shares back above $190. But it remains to be seen if this is a near-term driver in 2024 of sales and profits.
As many debates rage about the best strategic moves for Tesla going forward -- FSD, the charging network, China imperatives -- the stock will likely remain hostage to the sales growth outlook tempered strongly by the profit metrics.
Since the profit peak in 2022, every quarter that goes by without a stabilization of net income gives investors reason to believe that the EV revolution of mass adoption may be farther away than they once believed.
Additional content:
3 Solid Crypto Stocks to Bet On After April Halving Event
The cryptocurrency market didn’t have a memorable April after a solid rally in the first quarter that saw Bitcoin (BTC) hitting an all-time high of $73,750.
The world’s most popular cryptocurrency has since pulled back and was trading around $62,900 on Apr 30. One of the major reasons behind the decline in Bitcoin price was the halving event, which took place last month. The Bitcoin halving event happens once in four years.
However, with the April Bitcoin (BTC) halving event now concluded, there is widespread speculation that the reduction in the supply of Bitcoins will result in a scarcity-driven price increase for the digital asset in the upcoming months.
Miners who validate and record transactions receive rewards from the Bitcoin network and transaction fees. Halving reduces the block reward by half, aiming to cap Bitcoin's global circulation at 21 million. Consequently, demand for new Bitcoins increases, driving up prices.
However, analysts argue that because halving occurs every four years and is anticipated, its effects are priced in and not disruptive. Miners may sell to boost cash flows, leading to large BTC transfers to exchanges as part of risk management strategies.
The ongoing volatility in the cryptocurrency market is temporary. The ongoing geopolitical tensions in the Middle East between Iran and Israel are also weighing on cryptocurrency prices.
Given that cryptocurrencies are traded round the clock and globally, they exhibit immediate and sometimes more pronounced reactions compared to stocks.
Their decentralized nature allows for swift responses to geopolitical events, as traders quickly buy or sell digital assets to navigate uncertainty. This agility in the cryptocurrency market enables rapid adjustments to changing circumstances, reflecting the dynamic and interconnected nature of the digital asset ecosystem.
Our Choices
We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global, Inc. offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 559.5%. The Zacks Consensus Estimate for current-year earnings has improved 141.6% over the last 60 days. Coinbase currently sports a Zacks Rank #1.
Robinhood Markets, Inc. operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ expected earnings growth rate for the current year is 147.5%.The Zacks Consensus Estimate for current-year earnings has improved 45% over the last 60 days. Robinhood Markets currently has a Zacks Rank #2.
NVIDIA Corp. is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 84.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Pinterest and Tesla have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – May 2, 2024 – Zacks Equity Research shares Pinterest (PINS - Free Report) as the Bull of the Day and Tesla (TSLA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global, Inc. (COIN - Free Report) , Robinhood Markets, Inc. (HOOD - Free Report) , and NVIDIA Corp. (NVDA - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Pinterest became a Zacks #1 Rank in early April as analysts started to raise estimates ahead of their quarterly report this week.
Pinterest reported strong first-quarter 2024 results on Tuesday, with the bottom and top lines surpassing their respective Zacks Consensus Estimate.
The big story is that lots of architecture solutions for advertising and marketing technology are paying off and providing sustained ROI to sellers, such as bottom-of-funnel direct response ads and supporting ad-tech.
You can get all the quarterly numbers and growth metrics in this article we published Wednesday. Today I want to focus on the analyst reactions.
Monetizing Pinterest Gets Real
Several investment bank analysts were impressed by the quarter and management's ability to turn the levers of growth -- especially capitalizing on key relationships with Google and Amazon.
RBC Capital found that PINS' strong Q1 performance was driven by the effectiveness of direct links that resulted in increased advertiser spending due to improved return on ad spend.
"Direct Links is working, with advertisers spending more as they see better ROAS," said the RBC led by Brad Erickson.
"From here, we think Direct Links has only just begun enabling PINS's value-capture from higher conversions," they said, adding that Amazon and Google are open-ended contributors that have only just started.
Erickson also highlighted upcoming artificial intelligence (AI) measurement tools that could provide tailwinds for several years.
RBC raised their price target on PINS to $52 from $48 and reiterated their Outperform rating.
Goldman Sachs analyst Eric Sheridan liked the "very strong" results for Q1, and noted "broad-based upside."
"In many ways, we see this quarterly report as evidence of management progress across its mix of product initiatives (shoppable content, direct response/bottom-funnel ad budgets and partnerships aiding in wider scaled monetization)."
Sheridan maintained his Buy rating while raising his price target from $41 to $44 and he added that the company's partnerships with Amazon and Alphabet "are contributing revenue momentum that should continue to build throughout 2024."
JPMorgan analyst Doug Anmuth wrote that Pinterest "shifted into a higher gear of growth with broad-based strength across users & monetization."
Anmuth reiterated a Neutral rating while raising his price target from $38 to $44.
Wedbush analyst Scott Devitt wrote in a note to clients that the PINS results reflected "broad-based strength stemming from ongoing initiatives to improve monetization as well as healthy MAU (monthly active users) and engagement growth."
Devitt observed that Pinterest has started to benefit from the "ongoing adoption of lower funnel advertising tools and new ad surfaces, which are driving monetization improvements."
He maintained a Neutral rating while raising his price target from $38 to $44.
Piper Sandler analyst Thomas Champion wrote that while users accelerated across all geographies, with total MAUs of 512MM (+12% year-over-year), management referred to an "aging down" of the user base and rightly bragged that "Gen-Z now ~40%+ of the user base and growing fastest."
Champion reaffirmed an Overweight rating while lifting his price target from $48 to $50.
Bottom line on PINS: With 17% topline growth expected this year and next to cross $4 billion, PINS only trades at 6 times forward sales. Since it looks like estimates will continue to rise from here, I'd be a buyer of this stylish social-shopping platform that continues to innovate and attract new, and younger, users and advertisers.
Bear of the Day:
Tesla became a Zacks #5 Rank again on April 12 when shares were still trading above $170 and estimates were still dropping ahead of the EV maker's Q1 report on Tuesday 4/23.
My colleague Shaun Pruitt described the situation in his April 15 article...
In the two months prior, the Zacks EPS Consensus fell over 20% from $3.44 to $2.73.
And next year plunged nearly 24% from $4.61 to $3.52.
These downward analyst revisions ahead of the company report cause TSLA shares to drop under $140 on Monday 4/22, the eve of judgment day.
But with the news on 4/23 the market seemed to breathe a collective sigh of relief that things were not worse than delivered.
While investors have been debating the company numbers, statements, and plans, here we'll just focus on why TSLA shares will remain in the cellar of the Zacks Rank.
Since the report, this year's EPS projection has fallen to $2.48, representing a 20% annual drop in profits.
Investors knew that Tesla was aggressively cutting the prices of its cars to gain a dominant position in the EV market.
What they might not have counted on was how hard it would be for the top maker to also cut costs.
What's Ahead
The faithful got a welcome surprise this past Monday when it was announced that China was ready to partner with Full-Self Driving (FSD) initiatives.
This shot TSLA shares back above $190. But it remains to be seen if this is a near-term driver in 2024 of sales and profits.
As many debates rage about the best strategic moves for Tesla going forward -- FSD, the charging network, China imperatives -- the stock will likely remain hostage to the sales growth outlook tempered strongly by the profit metrics.
Since the profit peak in 2022, every quarter that goes by without a stabilization of net income gives investors reason to believe that the EV revolution of mass adoption may be farther away than they once believed.
Additional content:
3 Solid Crypto Stocks to Bet On After April Halving Event
The cryptocurrency market didn’t have a memorable April after a solid rally in the first quarter that saw Bitcoin (BTC) hitting an all-time high of $73,750.
The world’s most popular cryptocurrency has since pulled back and was trading around $62,900 on Apr 30. One of the major reasons behind the decline in Bitcoin price was the halving event, which took place last month. The Bitcoin halving event happens once in four years.
However, with the April Bitcoin (BTC) halving event now concluded, there is widespread speculation that the reduction in the supply of Bitcoins will result in a scarcity-driven price increase for the digital asset in the upcoming months.
Miners who validate and record transactions receive rewards from the Bitcoin network and transaction fees. Halving reduces the block reward by half, aiming to cap Bitcoin's global circulation at 21 million. Consequently, demand for new Bitcoins increases, driving up prices.
However, analysts argue that because halving occurs every four years and is anticipated, its effects are priced in and not disruptive. Miners may sell to boost cash flows, leading to large BTC transfers to exchanges as part of risk management strategies.
The ongoing volatility in the cryptocurrency market is temporary. The ongoing geopolitical tensions in the Middle East between Iran and Israel are also weighing on cryptocurrency prices.
Given that cryptocurrencies are traded round the clock and globally, they exhibit immediate and sometimes more pronounced reactions compared to stocks.
Their decentralized nature allows for swift responses to geopolitical events, as traders quickly buy or sell digital assets to navigate uncertainty. This agility in the cryptocurrency market enables rapid adjustments to changing circumstances, reflecting the dynamic and interconnected nature of the digital asset ecosystem.
Our Choices
We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global, Inc. offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 559.5%. The Zacks Consensus Estimate for current-year earnings has improved 141.6% over the last 60 days. Coinbase currently sports a Zacks Rank #1.
Robinhood Markets, Inc. operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ expected earnings growth rate for the current year is 147.5%.The Zacks Consensus Estimate for current-year earnings has improved 45% over the last 60 days. Robinhood Markets currently has a Zacks Rank #2.
NVIDIA Corp. is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 84.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.