In today's video, I look at the growth stocks Snap (NYSE:SNAP)Roblox (NYSE:RBLX), and Pinterest (NYSE:PINS). The stock prices for these companies have dropped from their 52-week highs. Below I share three bullish arguments for each stock.

Three reasons to add Snap to your watch list

  1. Snap reported 66% year-over-year (YOY) revenue growth and 22% YOY growth in daily active users for the first quarter of 2021.
  2. Snap is improving its fundamentals. For the first quarter of 2021, it reported a loss of $2 million in adjusted EBITDA compared to a loss of $81 million a year ago. The company also has more cash and short-term investment than debt.
  3. Snap continues to invest and innovate in its original content offerings and its camera and augmented reality platforms. These segments have received great feedback from users of Snapchat and those who advertise on the platform.

Three reasons to add Roblox to your watch list

  1. Roblox reported 140% YOY revenue growth and 161% YOY bookings growth for the first quarter of 2021.
  2. Roblox has exceptional fundamentals for its trailing 12 months. It is positive in cash flow from operations and has substantial cash and short-term investments with zero debt. 
  3. Roblox sees strong growth from users over the age of 13 and users in markets outside the U.S. and Canada. Those users were the primary reason Roblox reported a substantial YOY increase in daily active users and hours engaged for the first quarter of 2021.

Three reasons to add Pinterest to your watch list

  1. Pinterest reported 78% YOY revenue growth and 30% YOY growth in global monthly active users for the first quarter of 2021. 
  2. Pinterest has strong fundamentals for its trailing 12 months. It is positive in cash flow from operations and has substantial cash and short-term investments with zero debt. 
  3. Pinterest is still expanding internationally. In the first quarter of 2021, it introduced advertising to its platform in Brazil.

Click the video below for my full thoughts. 

*Stock prices used were the midday prices of May 20, 2021. The video was published on May 20, 2021. 



This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.