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Motley Fool Hidden Gems Investing

Stocks (and Investing Books) We're Bullish On

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 21 October 2022

⏱️ 39 minutes

🧾️ Download transcript

Summary

Snap fell 30% and took other social media and advertising stocks down with it. (0:30) Emily Flippen and Ron Gross discuss: - Pinterest, Meta Platforms, and Alphabet getting dragged down by Snap's bad news - American Express shares falling despite increased full-year guidance - Boston Beer's strong 3rd-quarter report - The latest from Microsoft, Netflix, Tesla, and Tractor Supply (19:15) Emily and Ron dip into the Fool Mailbag and discuss: - Medical device pure-plays - Investing books they recommend - Surprising economics of pumpkin spice - The latest from McDonald's and Keurig Dr. Pepper - Stocks they're more bullish on - Two stocks on their radar: ASML Holding and Blackstone Got a question about investing? Email podcasts@fool.com Stocks mentioned: SNAP, PINS, META, GOOG, GOOGL, CAT, DE, AXP, NFLX, MSFT, TSLA, TSCO, SAM, MCD, DNUT, SYK, MDT, ZBH, JNJ, RMD, SG, FNCL, JPM, SBUX, PEP, KO, KDP, BX, ASML Host: Chris Hill Guests: Emily Flippen, Ron Gross Engineer: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

We've got stocks we're feeling more bullish on and investing books for your reading list.

0:10.0

Motley full money starts now.

0:11.4

Everybody needs money. That's why they call it money.

0:37.0

We've got the latest headlines from all street.

0:51.0

We will dip into the full mail back and as always we've got a couple of stocks on our radar.

0:55.0

But we begin with a ripple effect in social media and advertising.

1:00.0

The third quarter results included a slight miss on expected revenue.

1:10.0

The report says it expects revenue to slide further in the fourth quarter.

1:14.0

Shares of snap fell 30% on Friday.

1:18.0

The ripple effect is that shares of Pinterest, Meta platforms and even Alphabet fell on Friday on concerns of a pullback in marketing spends.

1:26.0

Emily, where do you want to start?

1:28.0

Let's start with snapchats quarter because at face value this quarter wasn't all that bad.

1:34.0

They posted just the profitability, revenue only barely missed expectations and the daily average users actually blew it out of the water.

1:42.0

They grew 19% in the quarter.

1:45.0

That's what snapchat wants investors to focus on.

1:48.0

However, even despite the strong performance in the platform itself, revenue growth of only 6% is a reminder about just how challenging the ad market is.

1:57.0

In particular, how snapchat is monetizing their users.

2:00.0

But I will say, as much as this is an influx of the ad market and budgets being cut across the board, some of this is still snapchat specific.

2:09.0

Management knows that they have more than 75% of all 13 to 34 year olds and 20 countries across the world on their platform.

2:17.0

And they say that group represents 50% of all advertising spend.

2:21.0

If that's the truth, which I expect it is, why are they having such a hard time monetizing those users?

2:28.0

Because the market is there, the users are there, but their revenue growth is not.

...

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