 Welcome back to the watch list time for preview now for Pinterest do out this afternoon and our panel is ready joining me right now Ali Morabi is with us equity analysts at Morningstar and Melissa Armo founder owner of the stock swoosh Thank you both for being here. So Ali after we heard from meta Do you have takeaways that could help you to focus or pinpoint anything that goes on Pinterest today? Sure a couple things to keep in mind one, of course, you know with the uncertainty surrounding the macro environment the economy Of course, you know last Friday's employment numbers were actually a lot better than than everyone expected But with uncertainties then one should expect a deceleration and growth or a slowdown When it comes to advertising overall However, there are actually two main differences one is The advertisers are probably going to cut cut budget more on broad based or brand advertising brand campaigns Rather than direct response and that's what we pretty much saw with meta. If you compare it with let's say snap So now with Pinterest it's interesting because they actually made a lot of improvement under direct response advertising capabilities during the pandemic So so that's that's one thing to look for is that have they actually maintained that strength? Have they actually attracted more advertisers based on that improvement in direct response advertising? Compared to what they what their expertise was before which is broad based advertising So that's what we look for when they report later this afternoon Yeah, and and their value you think it's it's worth more than 40 bucks. Currently it's at 27 dollars in change Yes, and that's mainly because we do think that they have that network effect We think that the users come on to that platform because they have an intention an intention to purchase either Right there or intention to possibly more likely I should say purchase, you know Four weeks down the road a couple of months down the road and so forth So the advertisers like that and I think that's going to that's going to Attract the advertisers onto the platform And we do think that once that network effect kicks into gear Then you're talking about More high margin ad revenues come in and of course these guys continue to expand their margins and and reach gap profitability pretty soon Right understood. What do you think Melissa when you look at the all these social media stocks? Obviously, we've had some volatility when it comes to Pinterest after the bell today. What are you going to be watching for? How it reacts at earnings tonight at whether it gaps up or gaps down and then of course the market tomorrow because we Gapped down today in the market and we didn't really go anywhere and the market feels heavy to me The only reason the Pinterest rally the last couple weeks is because the market rally When you look at where it was from off the highs all the way back in 2021 again This is after COVID after it had the run up. This stock has lost like 75 percent of its value So there's not much that it's it's going to do to make me love it And there's no way it's going to reach anything for the foreign front a bit honoring So even if it would gap up in earnings tonight, we'd like you to get over 30 dollars a share So when you look at that, you look at Facebook You look at some of these ones that are reported on Friday or Thursday night Everything bomb that was out apple. I move on Google. Everything was down Friday morning I really think this has been a lackluster earning season and even if you go all the way back to the beginning Including the banks, you know, many of them were down Morgan stealing was the only Reaction and positive reaction on the earnings. So I think overall again We're well into earning season here. The market's trying to make a comeback to start out the year But the market feels heavy to me and I think it's going to be difficult for stocks like Pinterest and other things too that have been struggling for the last 12 to 18 months to really go anywhere if the market wants to keep falling Yeah, understood. And I'm sure that that 43 target is is more a 12 month target Tell me about the other names in the group. I mean here We're expecting for Pinterest to see revenue to rise earnings to drop and of course layoffs as they've been working on Cost cutting, um, where does that fit into other names? Or, you know, are there other names that you like in the group as well? Tell me the broader picture Sure, uh, it actually fits in pretty pretty much in line with the other names. Um, our our top Favorite names in in these specifically very specifically in the social network actually is still, uh, meta So and I think those guys have taken the right steps towards actually becoming operating more efficiently Focusing more on the bottom line Compared to what they have done historically Uh, so but I think Pinterest is also moving in that direction. I mean the announcement that they made regarding the layoffs last week We think that certainly Basically tells us that they are focusing on expanding those margins While at the same time, of course continuing to drive, uh, top line growth, although again the macro uncertainty Can pressure that top line growth a little bit. So So to answer your question, yes, meta still remains our favorite names in in the entire social network space now overall Some of the names that we that I also cover some of the other names that I also cover that I like and I think that they're They look pretty attractive include alphabet And also over completely different sector, but I think you should keep alphabet and uber mine too All right, we had a guest earlier who liked uber Melissa arm of final thoughts big picture on the market or names that you do like or you're more worried about a recession Well, I think there's a high possibility that we could be already in a recession again It's very hard to pinpoint the beginning of recession But I think that even though we rallied last week after the Fed announcement the Fed is going to continue to raise rates They may just continue to do a quarter point a quarter point a quarter point It did make sense the way the market reacted last week, which was positive on what he said to me He didn't say anything to rally on and I think all we've done is expand the range So we could be range found in the market Faking a rally faking higher faking lower for next three to six months and that makes it difficult for people to trade You have to find specific stocks that you love to buy a specific stocks that you really want to grab hold of the short Because it's going to be choppy for traders. So people need to watch what they're doing money manage themselves and make sure you take Lee mo rabbi and melissa armo Thank you both very much. Good to see you. That's going to do it first here on the watch list I'm Nicole petaledes. Thanks for being with me Market on close is next