Latest news with #ReggieBrown
Yahoo
28-05-2025
- Business
- Yahoo
1 Internet Stock to Consider Right Now and 2 to Brush Off
Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. Luckily for them, the market seems to believe there is still more growth ahead. This assumption has helped the industry stand firm over the past six months with a flat return while the S&P 500 shed 1.9%. Nevertheless, investors should tread carefully as many internet companies pursue winner-take-all strategies, meaning losses can be hefty if their playbooks don't pan out. Taking that into account, here is one internet stock poised to generate sustainable market-beating returns and two best left ignored. Market Cap: $14.07 billion Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. Why Are We Cautious About SNAP? Decision to emphasize platform growth over monetization has contributed to sluggish trends in its average revenue per user Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 5.2 percentage points Earnings per share fell by 10.2% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable Snap is trading at $8.42 per share, or 21.9x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than SNAP. Market Cap: $1.43 billion Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy. Why Are We Out on RVLV? May need to improve its platform and marketing strategy as its 7.4% average growth in active customers underwhelmed Concerning trends in both user engagement and monetization suggest its platform's efficacy is declining as its average revenue per buyer fell by 4% annually Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 18.5% annually Revolve's stock price of $20 implies a valuation ratio of 18.8x forward EV/EBITDA. Read our free research report to see why you should think twice about including RVLV in your portfolio, it's free. Market Cap: $2.46 billion Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. Why Could YELP Be a Winner? Platform is difficult to replicate at scale and leads to a best-in-class gross margin of 91.2% Highly efficient business model is illustrated by its impressive 25.7% EBITDA margin, and its operating leverage amplified its profits over the last few years Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety At $38.20 per share, Yelp trades at 7.2x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
14-05-2025
- Business
- Yahoo
1 Mid-Cap Stock with Promising Prospects and 2 to Think Twice About
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one mid-cap stock with massive growth potential and two best left ignored. Market Cap: $15.21 billion Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. Why Are We Wary of SNAP? Decision to emphasize platform growth over monetization has contributed to sluggish trends in its average revenue per user Efficiency has decreased over the last few years as its EBITDA margin fell by 5.2 percentage points Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 8.9% annually Snap's stock price of $9.06 implies a valuation ratio of 23.7x forward EV/EBITDA. Check out our free in-depth research report to learn more about why SNAP doesn't pass our bar. Market Cap: $11.38 billion Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services. Why Do We Avoid JLL? Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.7% over the last five years was below our standards for the consumer discretionary sector Low free cash flow margin of 2.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam JLL is trading at $239.62 per share, or 14.4x forward P/E. Read our free research report to see why you should think twice about including JLL in your portfolio, it's free. Market Cap: $27.88 billion Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies. Why Do We Like BR? Annual revenue growth of 9.1% over the last five years was superb and indicates its market share increased during this cycle Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 13% outstripped its revenue performance Free cash flow margin expanded by 4.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends At $237.31 per share, Broadridge trades at 26.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
Snap (NYSE:SNAP) Beats Q1 Sales Targets But Stock Drops 13.8%
Social network Snapchat (NYSE: SNAP) announced better-than-expected revenue in Q1 CY2025, with sales up 14.1% year on year to $1.36 billion. Its GAAP loss of $0.08 per share was 40.3% above analysts' consensus estimates. Is now the time to buy Snap? Find out in our full research report. Revenue: $1.36 billion vs analyst estimates of $1.35 billion (14.1% year-on-year growth, 1.3% beat) EPS (GAAP): -$0.08 vs analyst estimates of -$0.13 (40.3% beat) Adjusted EBITDA: $108.4 million vs analyst estimates of $64.77 million (8% margin, 67.4% beat) Operating Margin: -14.2%, up from -27.9% in the same quarter last year Free Cash Flow Margin: 8.4%, down from 11.7% in the previous quarter Daily Active Users: 460 million, up 38 million year on year Market Capitalization: $14.98 billion 'We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users,' said Evan Spiegel, CEO. Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Snap's 7.8% annualized revenue growth over the last three years was tepid. This was below our standard for the consumer internet sector and is a poor baseline for our analysis. This quarter, Snap reported year-on-year revenue growth of 14.1%, and its $1.36 billion of revenue exceeded Wall Street's estimates by 1.3%. Looking ahead, sell-side analysts expect revenue to grow 10.6% over the next 12 months, an acceleration versus the last three years. This projection is above the sector average and implies its newer products and services will fuel better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. As a social network, Snap generates revenue growth by increasing its user base and charging advertisers more for the ads each user is shown. Over the last two years, Snap's daily active users, a key performance metric for the company, increased by 10.4% annually to 460 million in the latest quarter. This growth rate is solid for a consumer internet business and indicates people are excited about its offerings. In Q1, Snap added 38 million daily active users, leading to 9% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren't accelerating user growth just yet. Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns from the ads shown to its users. ARPU can also be a proxy for how valuable advertisers find Snap's audience and its ad-targeting capabilities. Snap's ARPU has been roughly flat over the last two years. This isn't great, but the increase in daily active users is more relevant for assessing long-term business potential. We'll monitor the situation closely; if Snap tries boosting ARPU by taking a more aggressive approach to monetization, it's unclear whether users can continue growing at the current pace. This quarter, Snap's ARPU clocked in at $2.96. It grew by 4.7% year on year, slower than its user growth. We were impressed by how significantly Snap blew past analysts' EPS and EBITDA expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its free cash flow missed. Overall, we think this was a decent quarter with some key metrics above expectations. The market seemed to focus on the negatives, and the stock traded down 13.7% to $7.85 immediately following the results. So do we think Snap is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
10-04-2025
- Business
- Yahoo
1 Growth Stock to Stash and 2 to Keep Off Your Radar
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market's punishment can be swift and severe when trajectories fall. Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here is one growth stock with significant upside potential and two that could be down big. One-Year Revenue Growth: +16.4% Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. Why Are We Wary of SNAP? Decision to emphasize platform growth over monetization has contributed to 2.5% annual declines in its average revenue per user Expenses have increased as a percentage of revenue over the last few years as its EBITDA margin fell by 5.5 percentage points Incremental sales over the last three years were much less profitable as its earnings per share fell by 14.7% annually while its revenue grew At $8.50 per share, Snap trades at 20.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SNAP. One-Year Revenue Growth: +30.1% Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Why Are We Cautious About EVH? Projected sales decline of 18.9% for the next 12 months points to a tough demand environment ahead Poor free cash flow margin of 0.3% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Negative returns on capital show management lost money while trying to expand the business Evolent Health is trading at $9.50 per share, or 15.3x forward price-to-earnings. If you're considering EVH for your portfolio, see our FREE research report to learn more. One-Year Revenue Growth: +19.8% Founded in Austria in 2005, Dynatrace (NYSE:DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on. Why Are We Fans of DT? ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Prominent and differentiated software culminates in a premier gross margin of 82.2% Robust free cash flow margin of 24.9% gives it many options for capital deployment Dynatrace's stock price of $44 implies a valuation ratio of 7.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
Globe and Mail
03-03-2025
- Business
- Globe and Mail
Social Networking Stocks Q4 Recap: Benchmarking Nextdoor (NYSE:KIND)
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the social networking industry, including Nextdoor (NYSE:KIND) and its peers. Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online. The 6 social networking stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 2.4% while next quarter's revenue guidance was 1% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.9% since the latest earnings results. Weakest Q4: Nextdoor (NYSE:KIND) Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses. Nextdoor reported revenues of $65.23 million, up 17.4% year on year. This print exceeded analysts' expectations by 1.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts' number of weekly active users estimates and EBITDA guidance for next quarter missing analysts' expectations significantly. Unsurprisingly, the stock is down 28.9% since reporting and currently trades at $1.77. . Best Q4: Snap (NYSE:SNAP) Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. Snap reported revenues of $1.56 billion, up 14.4% year on year, outperforming analysts' expectations by 0.6%. The business had a strong quarter with an impressive beat of analysts' EBITDA estimates and solid growth in its users. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.7% since reporting. It currently trades at $10.26. Is now the time to buy Snap? Access our full analysis of the earnings results here, it's free. Yelp (NYSE:YELP) Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. Yelp reported revenues of $362 million, up 5.7% year on year, exceeding analysts' expectations by 3.3%. Still, it was a mixed quarter as it posted full-year EBITDA guidance missing analysts' expectations. Yelp delivered the slowest revenue growth in the group. As expected, the stock is down 15.4% since the results and currently trades at $34.31. Read our full analysis of Yelp's results here. Meta (NASDAQ:META) Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs. Meta reported revenues of $48.39 billion, up 20.6% year on year. This result topped analysts' expectations by 2.9%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts' EBITDA estimates but revenue guidance for next quarter missing analysts' expectations. The company reported 3.35 billion daily active users, up 5% year on year. The stock is flat since reporting and currently trades at $670.92. Reddit (NYSE:RDDT) Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes. Reddit reported revenues of $427.7 million, up 71.3% year on year. This print surpassed analysts' expectations by 4.6%. Aside from that, it was a satisfactory quarter as it also logged EBITDA guidance for next quarter exceeding analysts' expectations but a significant miss of analysts' number of domestic daily active visitors estimates. Reddit achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The company reported 48 million daily active users, up 31.9% year on year. The stock is down 24.7% since reporting and currently trades at $162.96. Market Update The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
