I took a stab at writing about one of my core holdings,
$PINS, and one of my daughter's,
$IDXX.
Recently reporting earnings, I wanted to try to highlight why I still like (and am buying) each of these companies for the long term despite their Q4 earnings reports being less than awe-inspiring.
Here's one key takeaway for each stock that reinforces my investment thesis in them:
- Pinterest - Shoppable ads grew by 50% YoY, while Gen Z's engagement with videos on the platform grew stronger -- with the young segment accounting for 50% of the platform's pinned videos. Yes, sales only rose 4% and GAAP earnings nearly turned negative. But compared to its advertising peers, Pinterest is doing just fine, considering how brutal the ad industry has been lately.
- Idexx Labs - While it "only" grew sales and EPS by 7% and 14% in Q4, management is guiding for 19-26% EPS growth in 2023. Roughly 90% of the company's core segment's sales are recurring in nature (thanks to its razor-and-blade model) and Idexx has a 97% retention rate across each of its modalities. Despite a down year for vet visits (which as weird as it is to say faced tough comps from pandemic-aided adoptions), the human-pet bond will only grow stronger over time -- making the company's products all the more important.
Would love to know your biggest fears about either company if they are a stock you keep tabs on or own.
Thanks as always for reading. 🙏