Pinterest (PINS) slumped by 15.7% on Apr. 28, 2023, when it posted weak revenue and user growth. The limited margin expansion is unattractive.
Pinterest reported revenue growing by 4.8% Y/Y to $602.58M. Global monthly active users only rose by 7% Y/Y. The tougher environment does not justify Pinterest’s stock-based compensation, which dilutes shareholders. Its deal with Amazon (AMZN) is good news, which unfortunately does not add to revenue until 2024.
Snap (SNAP) posted a penny in non-GAAP EPS in Q1/23. Revenue fell by 6.7% Y/Y. Unless Snap attracts activist investors to shake up the inefficiently run firm, shareholders will suffer. The video messaging app is at a high risk of losing its young user base.
TikTok continues to grow in popularity. Snap and Alphabet’s (GOOG) YouTube Shorts will face serious competition. Domestically, a Congress bill that passes to ban people under 13 from using social media would hurt Snapchat.
In the regional bank sector, First Republic Bank’s (FRC) seriously weak quarterly report sent the stock from $15 to the low single digits. The bank failed to retain customer deposits. This flight of bank withdrawals could happen to other regional banks.
Avoid regional banks. Instead, stick with the larger banks like PNC (PNC), JP Morgan (JPM), and Citibank (C).
