Airbnb, Pinterest, and Roku Show Signs of Recovery in the Bear Market

The recent Nasdaq bear market has taken a toll on many consumer stocks, especially those in the tech industry. However, as with all bear markets, there may be opportunities for growth as the market recovers. In this article, we will explore three consumer tech stocks that may offer potential for recovery and growth: Airbnb, Pinterest, and Roku.

Airbnb is a company that has revolutionized the vacation and residential real estate industry by turning unused properties into short-term rentals. It has leveraged technology, such as artificial intelligence, to better understand customers and set competitive rates. In the first three quarters of 2022, Airbnb brought in $6.5 billion in revenue and turned profitable with $1.6 billion in net income. Despite its growth, Airbnb's stock has taken a hit from the bear market and currently sells at a 50% discount from its all-time high and a price-to-sales ratio of 10. With its continued growth and the transformative impact it has had on the industry, owning Airbnb stock may be a wise investment for 2023.

Pinterest is a social media platform that allows users to "pin" images based on their interests. The company generates revenue from ads based on specific customer interests, called promoted pins. After the end of COVID-19 lockdowns, Pinterest's monthly active users began to decline. However, under new leadership, the company has shifted its focus to e-commerce, and this strategy has already shown signs of success. In the first nine months of 2022, Pinterest's revenue rose to $1.9 billion, including an 11% increase in global average revenue per user. With a price-to-sales ratio of 7 and the potential for further growth in e-commerce, Pinterest may be a stock worth considering in 2023.

Roku is a streaming platform that brings together channels, customers, and advertisers. Advertising is the main revenue driver for Roku, as the shift from traditional broadcast TV to streaming has led to an increase in ad dollars. The stock saw significant growth during the pandemic but slowed as consumers returned to offline activities and ad spending decreased. Despite these challenges, Roku saw a 19% increase in revenue in the first three quarters of 2022. However, the company posted a loss due to rising costs and declining player sales. After losing more than 90% of its value, Roku has recently experienced a 70% surge from its December low and has a price-to-sales ratio below 3. As ad sales are likely to recover, Roku may again become a growth stock worth considering.

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