Amazon Just Schooled Apple

...on how to make predictable revenue through monthly subscriptions.

[PaperTrail] Can't Yelp But Wait

Friday, November 1st | Issue No. 127


It's my birthday 🎉month! Special announcement below👇🏽.

MARKET MOVES...

S&P 500: 3,037.56 -9.21 (-0.30%)

Dow Jones: 27,046.23 -140.47 (-0.52%)

Nasdaq: 8,292.36 -11.62 (-0.14%)

PRE-MARKET PLAY...

(listen to PAPERTRAIL playlist)

PUT A PIN IN IT...

Unless you have a bad earnings report then I want to talk about it not now but right now.


Pinterest (NYSE: PINS) shared its Q3 earnings report yesterday and the selloff was all the way live with investors looking at each other like...​

Lil Rel on the phone in the movie Get Out

WHY THIS IS HAPPENING...

First things first. Pinterest is a search engine like Google (NASDAQ: GOOG/GOOGL), not a social network. However, it's often compared to other social networks like Facebook and Instagram (NASDAQ: FB), LinkedIn (NASDAQ: MSFT), and Twitter (NYSE: TWR) when it comes time to measure its stock's success. All of these companies rely heavily on ad revenue to keep the lights on and after Google and Facebook recently reported ad sales growth rates of 17% and 28%, respectively, investors were looking for Pinterest to make it rain as well and boy did it. Pinterest shared that ad sales grew by 47% in Q3 in comparison to last year but the company still came up short on total revenue by well over half a mil not to mention that the total of monthly active users is down and the company has yet to become profitable.


To make matters worse, Pinterest lowered its guidance on total revenue for the year meaning it's just not going to make as much money as it thought it would back when the year started. To keep it 💯​, investors are not only looking for more top line sales but higher bottom line profits in a time where a recession may be coming 'round the corner and they want to invest in companies that will be able to thug it out during a market downturn.


Pinterest got the bag and fumbled it causing the stock to drop 18% after the report.

THE RETURN...

Pinterest stock is down 27% since it peaked in August but it's still up 32% since its IPO earlier this year.

FOR THE NEWB IN YOU...

Guidance is simply a company's outlook on what's to come with a focus on things like revenue, net profit, expenses, user growth, etc. It's typically shared with investors during an earnings report so they have an idea of what to expect going forward and if anything has changed since the last report. Think of it like an artist projecting (guidance) his or her second album to go Platinum since the first album did. In this case, the second album can either do go Platinum and meet expectations, go Gold and miss expectations, or go 2X Platinum and exceed expectations.


Not sure what top and bottom lines are? Find out in Issue No. 125.

YOU GOTTA PAY TO PLAY...

Is there an animoji for that?


iPhone sales haven't been what they used to be for Apple (NASDAQ: AAPL) for years now and investors are ready for the trillion dollar company to switch things up a bit.

Black woman from TV show Wife Swap

WHY THIS IS HAPPENING...

Investors are encouraging Apple to offer