The market remains harsh, but these two stocks boast what rebounds need.
The world stares at economic challenges, including escalated inflations, geopolitical tensions, and recession fears. That has seen equity markets tumbling. Most individuals tend to avoid the stock market amidst such conditions. Though it’s impossible to predict a bottom, investors might consider top-notch companies available for investment at discounted prices. Here are some shares worth dip-buying.
Airbnb’s latest struggles don’t reflect its completed finance performance. Though the COVID pandemic hurt the business, with the hospitality and travel industry crashing during the coronavirus outbreak, things are somewhat better now. For example, the company’s Q1 results showed revenue, bottom line, and experiences & nights booked overtook their 2019 figures. That means the business’s current performance surpasses pre-COVID levels.
Airbnb’s Q1 revenue surged 70% Y/Y, and 80% than 2019 Q1, to $1.5B. The experiences & nights increased by 59% Y/Y and 26% up that three years ago, to 102.1M. Furthermore, the $19 million net loss during the quarter remained more favorable than the $1.2B seen over the past year and 2019 Q1’s $292 million.
Besides everyone toiling from home nowadays, more individuals travel while doing that. That means they need residents on their way. Airbnb’s rentals offer more benefits than hotels: amenities, privacy, and lower prices. The trend will increase as COVID subsides. Though a potential recession might disrupt business (temporarily), the company remained primed for long-term triumph.
Pinterest didn’t struggle like Airbnb during the COVID-pandemic. Government lockdowns, efforts to avoid the virus, and business closures had individuals flocking to social media. However, the company’s MAUs (monthly active users) declined within the past year amidst increased COVID vaccinations.
Declined userbase scared investors since Pinterest generates cash via the advertising business on its ecosystem. Moreover, Pinterest faces stiff competition from video-centered networks like TikTok, which dominates the online world.
Barring pandemic-associated dynamics, Pinterest’s monthly active users at 433M during Q1 end reflected a 9% Y/Y decline. The figure stayed well beyond pre-COVID levels at 335 million. Analysts believe the company will start promoting this index on Y/Y again. Here’s why.
First and foremost, Pinterest isn’t a copycat of any social media network. It boasts a distinctive ‘image discovery’ flavor that allows users (pinners) to generate motivation while engaging in different creative activities. That’s why the company’s user base might somewhat overlap other social media leaders.
Secondly, Pinterest concentrated on inspiring and positive ideas rather than divisive and contentious ones like politics. Thus, the network might offer a break from touchy subjects for individuals who need one. You might consider its shares at current discounted prices.