I look at earnings from Pinterest (PINS -0.64%) and Spotify (SPOT 2.77%) in today's video, and share three reasons why their drop in stock price might be a buying opportunity.
- Pinterest's most recent earnings showed strong year-over-year growth in revenue, monthly users, and average revenue per user.
- Pinterest is fundamentally strong. It has now had three consecutive quarters of profitable adjusted EBITDA and has a balance sheet with a solid cash position and short-term investment, and no debt.
- For fiscal year 2021, Pinterest will focus its research and development efforts to improve its content, the Pinner experience, advertiser success, and shopping.
Spotify
- Spotify's most recent earnings showed both year-over-year and quarter-over-quarter growth for total monthly users, premium subscribers, and ad-supported users.
- Spotify continues to innovate and try new concepts. It recently acquired Betty Labs to accelerate its entry into the live audio space. It also announced a partnership with Facebook (META -10.56%) to allow social users to listen to Spotify music without switching applications.
- For FY 2021, Spotify expects growth in monthly active users and the addition of at least 14 million new paid subscribers to its platforms.
Click the video below for my full thoughts.
*Stock prices used were the market prices of April 28, 2021. The video was published on April 28, 2021.
