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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