BRING IN OUR GUESTS TO TRY TO
INTERPRET WHAT'S GOING
ON TODAY AND BEYOND THAT IS
MICHAEL LEAVE FOUNDER AT
MICHAEL LEE STRATEGY MICHAEL
GREAT TO HAVE YOU WITH US ON
THE SHOW TODAY AS WE'RE JUST
TALKING ABOUT STOCKS
FALLING SHE BARKLEY TODAY,
STOCKS ENDING AT SESSION LOWS.
WE'RE SEEING CORONAVIRUS CASES
RISE. HOW SHOULD WE BE
INTERPRETING TO TASE TODAY'S
MARKET REACTION.
>> YES, IT'S IT'S NOT AN EASY
ANSWER WITH WHAT'S
GOING ON AND I THINK WHAT HAS
BEEN DRIVING THIS FOR THE FIRST
TIME IN MY CAREER IS A LOT OF
OPTIONS, TRADING USING
DERIVATIVES TO
PUSH MARKETS IRON LOWER SHORT
SQUEEZE IN FOR SELLING.
AND BEFORE I GET TOO
COMPLICATED THAT
ITS LEVERAGE. BEING
USED BY VERY LARGE POOLS OF
MONEY VERY AND FAST FAST PACE,
TRADING, HIGH FREQUENCY TYPE
TRADING. BUT EQUITY
OPTION DERIVATIVES AND SO AS
YOU SEE THE NASDAQ HAS EXTRA
PROBABLY STILL UP 20% THIS YEAR
WHILE THE OTHER INDICES ARE
PROBABLY ONLY UP ONE PERCENT
MAYBE THE DOW'S DOWN. BUT YOU
KNOW YOU'VE HEARD ABOUT THIS
SOFTBANK GOING OUT BUYING ALL
THESE CALLS DRIVING THE MARKET
HIGHER CREATING THESE
SORT OF SYNTHETIC
SHORT SQUEEZES A LITTLE WHEN
YOU HAVE A PLUMBING OR AN
UNDERPINNING OF A MARKET LIKE
THAT YOU TEND
TO HAVE. SOME REALLY STRONG
RALLIES AND REALLY VIOLENT SELL
OFFS AND REMEMBER WHEN THE
MARKET GOES UP
2% IN A DAY NOBODY PANICS
BECAUSE NOBODY PANICS WHEN THE
MARKET GOES UP, HOWEVER, WHEN
THE MARKET SELLS OFF LIKE THIS
PEOPLE DON'T LIKE TO SEE IT
THEY DON'T LIKE TO LOOK
AT IT WHAT I THINK IS THE KEY
DIFFERENTIATOR IN THIS SELL
OFF. BUT THAT THE BETWEEN A LOT
OF OTHER SAW ALSO SEEN THIS
YEAR IS THE AMOUNT OF
UNCERTAINTY THAT'S GOING TO
HAPPEN IN LESS THAN A
WEEK K. YOU KNOW THIS ELECTION
NOBODY KNOWS HOW THIS IS GOING
TO GO IS GOING TO GET CONTESTED
GOING TO JANUARY IS JOE BIDEN
OR DONALD TRUMP GOING TO BE A
CLEAR WINNER NEXT TUESDAY
NIGHT. WE
DON'T KNOW SO A LOT OF
TRADITIONAL LONG ONLY BIG
BUYERS. THAT WOULD STEP IN TO
BUY THE DEBT. I THINK ARE
TAKING A LITTLE BIT OF A PAUSE
HERE JUST BECAUSE ARE YOU THE
COUNTRY COULD BE HEADED TO VERY
DIFFERENT DIRECTIONS JUST A FEW
DAYS
OR NO, SO IF YOU'RE THE AVERAGE
INVESTOR
THAT'S ALL THERE THAT WANTS TO
BUY SOME HIGH QUALITY NAMES A
WAR YOU'RE DOLLAR COST
AVERAGING INTO THE SNP 5 100 OR
THE CUES OR SOMETHING
LIKE THAT THIS PRESENTS A
REALLY GOOD OPPORTUNITY BECAUSE
I THINK THE SELLING IS WAR.
YOU
KNOW TECHNICAL. FROM THAT
STANDPOINT VERSUS FUNDAMENTALS
BREAKING DOWN.
>> YEAH IT'S A NICE YEAH, I
KNOW YOU KNOW I DO ACTUALLY
WANT YOU TO HONE IN NOW THAT A
LITTLE BIT MORE BECAUSE AS YOU
TALK ABOUT THE INFLUENCE OF THE
OPTIONS MARKET
OPTIONS, TRADES ON THE OVERALL
EQUITY MARKETS ARE
INVESTORS STILL BETTING ON
DOWNSIDE RISK OR THEY YOU KNOW
BUY PUT OPTIONS FOR EXAMPLE,
WHAT IS THE INTERPRETATION OF
THESE OPTIONS, TRADERS THAT IS
DRIVING THE MARKETS DOWN
OVERALL.
>> YOU KNOW WHAT I DON'T
YOU HISTORICALLY WHEN YOU SEE A
LOT OF CALL BY HEAD OF STOCK IN
EARNINGS, YOU KNOW THAT'S A
BULLISH SENTIMENT. I
THINK THE DIFFERENCE NOW IS NOT
REFLECTED THE FUNDAMENTALS IT'S
DONE TO PUSH MARKETS IN CERTAIN
DIRECTIONS RIGHT TO ALMOST
MUSCLE THE
MARKET AROUND IN THE DIRECTION
YOU WANT TO GO AND SO
ONCE IT STARTS MOVING THAT
DIRECTION YOU GOT A PIE LOT OF
FUN AND RALLIES THE UPSIDE
BECOME STRONGER AND SELL OFF TO
THE DOWNSIDE BECOME MORE
VIOLENT. IF IF THAT MAKES
SENSE SO OR AVERAGE EVERYDAY
INVESTORS LIKE MY CLIENTS, I'M
SURE A LOT OF YOUR VIEWERS
THAT OR THEY'RE TAKING MONEY
OUT OF THE PAYCHECK EVERY
COUPLE OF WEEKS, WE'LL HAVE
SOME CASH ON THE SIDELINE,
YOU KNOW RIGHT THESE ARE THE
TYPES OF DAYS WHERE YOU WANT TO
GET INVOLVED BECAUSE 3 OF 6
FROM MONTHS FROM NOW WE HAVE A
VAST LEE IMPROVING.
ECONOMY SO ALL WE'RE GOING TO
GDP REPORT TOMORROW, THE
ATLANTA FED'S GDP NOW IS
TRACKING AT 37% GROWTH SO
OBVIOUSLY WE HAD
THE SHARPEST DECLINE IN THE
HISTORY UNITED STATES LED BY
THE PANDEMIC AND THEN IT TODAY
OUR TOMORROW WE'RE GOING TO GET
THE FIRST READING OF WHAT
SHOULD BE THE MOST SPECTACULAR
BOUNCE BACK
IN THE HISTORY OF THE COUNTRY
AND SO ONCE THE ECONOMY 10
STARTS MOVING ADDRESS
ACTION, MAYBE WE'LL SPEED UP OR
SLOW DOWN, BUT YOU TYPICALLY
ENTERING A NEW ECONOMIC CYCLE
THAT'S NOT GOING TO STOP FOR
MANY YEARS AND THE STOCK MARKET
TYPICALLY MOVES IN ADVANCE OF
THAT SO BEFORE THE ECONOMY
STARTED HEALING
MARKET STARTED RALLY BEFORE THE
IT TO GET CRIMES IS STOCKS WILL
START SELLING OFF. BUT THAT'S
YEARS FROM NOW SO
WHAT WHAT AND THESE ARE THE YOU
KNOW IT'S IT'S NEVER FAR TO
STICK YOUR HEAD IN THE FIRE,
BUT THIS IS THE OPPORTUNITY
WHEN YOU CAN GET INVOLVED IF
YOU SET TO HIGH QUALITY BONDS
OUT OF CASH SITTING ON THE
SIDELINES TO GO AND BUY SOME
STOCKS.
>> ALL RIGHT MICHAEL STICK WITH
US I DO WANT TO CUT IN WITH OUR
OWN BRAD SMITH FOR A SECOND WE
HAVE SOME BREAKING NEWS ON
PINTEREST'S EARNINGS, BRAD TAKE
IT AWAY.
>> THANKS SO MUCH. NOR YES
PINTEREST REPORTING EARNINGS
TODAY AND TAKE A LOOK IT SHARES
AN AFTER HOURS.
THEY ARE JUMPIN JUMPIN IS
DESTINY'S CHILD WOULD SAY TAKE
A LOOK AT SOME OF THE RESULTS
THAT CAME IN IT WAS A BEAT ON
BOTH THE TOP
AND BOTTOM AND INVESTORS ARE
REWARDING AS YOU CAN SEE THERE
ON
THE SCREEN. THE EPS THAT CAME
IN AT $0.13 A SHARE VERSUS AN
EXPECTATION OF $0.2 A SHARE
REVENUE CAME
IN AT 143 MILLION DOLLARS
VERSUS AN ESTIMATE OF 377.6 8
MILLION DOLLARS AND SO BIG
BEATS ON BOTH
THE TOP AND BOTTOM LINES.
THERE LET'S DIVE INTO SOME OF
THE DATA POINTS THAT THE
COMPANY IS ACTUALLY POINTING
OUT IN THIS PARTICULAR REPORT
AND FIRST I WANT TO
START WITH THE GLOBAL MONTHLY
ACTIVE USERS THAT GREW 37%
YEAR-OVER-YEAR WE'RE NOW
LOOKING AT
442 MILLION GLOBAL MONTHLY
ACTIVE USERS AND WHEN YOU TALK
ABOUT HOW THEY'RE MONETIZING
THOSE USERS YOU HAVE TO LOOK AT
THE AVERAGE REVENUE PER USER
NOT WHEN THE UNITED STATES SIDE
DOMESTICALLY THEY SAW AN
INCREASE OF
31% GLOBALLY THERE WAS AN
INCREASE OF 15% AND IN THE
INTERNATIONAL BREAK OUT THEY
SAW AN INCREASE OF 66%
AND SO ALL OF THIS CONSIDERED
YOU'RE LOOKING AT AN AVERAGE
REVENUE PER USER IN THE UNITED
STATES GOING FROM THE SAME
3 MONTHS ENDED IN SEPTEMBER
30TH 20 OF 19 AT $2 AND $0.93
TO $3.85 THIS
YEAR SO ALMOST A FULL DOLLAR
DIFFERENCE BUT MORE THAN $0.90
AT THIS POINT IN TIME THAT
WE'RE SEEING IN THE JUMP
YEAR-OVER-YEAR AND SO AN
INCREASE THERE CLEARLY AND THEN
ALSO YOU'RE SEEING AN INCREASE
IN THE
INTERNATIONAL SIDE THAT ONE UP
FROM $0.13 IN 2019 THE
COMPARABLE PERIOD IN 2019 TO
$0.21 IN THIS YEAR IN TERMS OF
WHAT THE COMPANY IS POINTING
OUT JUST LAST YEAR THE COMPANY
IN
THE LEADERSHIP, POINTING
SPECIFICALLY TO MORE THAN EVER
PEOPLE COMING TO PINTEREST TO
GET INSPIRATION FOR THEIR LIVES
EVERYTHING FROM PLANNING EARLY
FOR A SOCIALLY DISTANT
HALLOWEEN TO CREATING
GREAT HOME SCHOOL FOR THEIR
KIDS THAT'S COMING FROM BEN
SILVERMAN CEO AND CO-FOUNDER
OF PINTEREST THEY'RE ALSO
SAYING THEIR TOP PRIORITIES TO
CONTINUE MAKING PINTEREST HOME
TO THE MOST INSPIRING
ACTIONABLE CONTENT THIS QUARTER
THEY LAUNCHED A SET OF TOOLS TO
EMPOWER CREATORS TO SHOW AND
SHARE THEIR IDEAS WITH PEOPLE
WHO ARE ALREADY ACT THEY ARE
SEEING
SOME STRONG MOMENTUM IN THEIR
BUSINESS EXPERIENCE IN JULY
CONTINUE THROUGH THE REST OF
THE
3RD QUARTER AND SO THAT COMING
FROM THEIR CFO AS WELL SO JUST
LAST YEAR A BEAT ON TOP AND
BOTTOM FOR PINTEREST
AND GOING INTO THIS HOLIDAY
SEASON. IT'S GOING TO BE
CRITICAL TO SEE HOW THE
ADVERTISERS CONTINUE TO GO TO
THEIR BUSINESS. THEY DID
MENTION IT WAS ALL DRIVEN BY
RECOVERING ADVERTISER DEMAND AS
WELL AS
POSITIVE RETURNS FROM THEIR
INVESTMENTS IN ADVERTISER
PRODUCTS AND INTERNATIONAL
EXPANSION THERE AS WELL NOR I
DO WANT TO BRING YOU BACK INTO
THIS CONVERSATION BUT WE'VE
SEEN CONSIDERABLE MOVEMENT ON
PINTEREST IN AFTER
HOURS TRADING.
>> YEAH, YOU DID A GREAT JOB
BREAKING THAT DOWN BRAD
SLUG NUMBERS FROM AN INVESTOR
PERSPECTIVE FOR PINTEREST
ESPECIALLY THE INTERNATIONAL
ARPU NUMBERS WHICH YOU LAID
OUT, BUT I DO WANT TO PROVIDE A
LITTLE BIT OF CONTEXT AROUND
THE GLOBAL MONTHLY ACTIVE USERS
NUMBER. WHAT SHE DID BRING UP
WE SAW A
37% YEAR-OVER-YEAR GROWTH FOR
THOSE GLOBAL MONTHLY ACTIVE
USERS FOR
CONTACTS IN THE LET THE
PREVIOUS QUARTER FOR PINTEREST
THEY SAW GROWTH OF 39% YEAR
OVER YEAR IN TERMS OF GLOBAL
MONTHLY ACTIVE USERS
SO PRETTY STEADY THEY'RE SEEING
THAT YEAR-OVER-YEAR GROWTH FROM
QUARTER
TO QUARTER FACEBOOK IN
COMPARISON ITS MONTHLY ACTIVE
USERS IN THE LAST QUARTER GREW
AT A 12% RATE. SO JUST LOOKING
AT THE GROWTH OF PINTEREST'S
USERS OF VERSUS FACEBOOK
OBVIOUSLY STARTING FROM A
LOWER BASE, BUT THIS COULD BE
SOMETHING THAT GETS ADVERTISERS
EXCITED BECAUSE
MORE PEOPLE ON THE PLATFORM, A
HIGHER GROWTH RATE OF PEOPLE ON
THE PLATFORM AND TIME SPENT
EQUALS MORE RETURN ON THEIR
INVESTMENT AND ADVERTISERS
WILLING TO PAY MORE SO THAT THE
FACT THAT THEIR GLOBAL MONTHLY
ACTIVE USER GROWTH RATE HAS
BEEN SUSTAINABLE AND THAT MUCH
HIGHER THAN.
>> A KEY COMPETITOR FACEBOOK IS
PRETTY SIGNIFICANT YOU CAN SEE
THEIR SHARES ARE UP BY ALMOST
19% IN AFTER HOURS TRADE.
>> I DO WANT TO BRING.
MICHAEL LEE BACK IN FROM
MICHAEL THE STRATEGY. MICHAEL
JUST INITIAL
REACTIONS ON INTEREST IT IS A
PROXY IN SOME WAYS OF THE
HEALTH OF THE AVERAGE RISING
BUSINESS OVERALL DOES THIS MAKE
YOU OPTIMISTIC THAT THESE
ADVERTISERS ARE BACK THEY HAVE
PRODUCT AND SERVICES TO
ADVERTISE ON THE PLATFORM.
YEAH
>> YOU KNOW THE THE
PINTEREST IS.
>> PART OF WHAT I WOULD THE
HOUSING BOOM THAT'S
GOING ON WE ARE IN CYCLICAL
TREND
PEOPLE ARE MOVING OUT OF THE
CITY INTO HOMES, THEY YOU KNOW
LEAD LED BY THE CORONAVIRUS
PANDEMIC AND NOT AND THEN
PEOPLE THAT ARE LIVING IN SMALL
SUBURBS ARE MOVING TO THE
COUNTRY. LAW A NEW HOMES OUT
THERE AND WHAT PEOPLE WANT
PEOPLE ARE NOT GOING
ON VACATION. SO A LOT OF THAT
WALLET SHARE IS GOING ON A HOME
AND
HOME IMPROVEMENT AND PINTEREST
IS JUST ONE OF THESE OTHER
PLACES WHERE YOU CAN GO
TO IMPROVE THAT QUALITY OF LIFE
WHETHER IT'S
WITH THAT PATIENTS OR RECIPES
OR WHATEVER IT IS YOU'RE GOING
TO HAVE ON THERE. THIS
THAT KIND OF KNOCK ON THE FACT
THAT YOU'RE GOING TO SEE IN A
LOT OF COMPANIES EARNINGS THIS
QUARTER THAT IF IT
PINTEREST THERE'S A
LOT OF RUNWAY FOR THIS BASED
BASED ON THE WAY THAT
LIFE IS KIND OF CHANGING I MEAN
THE MORE TIME YOU'RE GOING TO
SPEND AT HOME.
THE MORE THE MORE YOU'RE GOING
TO WANT TO MAKE IT A NICER
PLACE AND I I GOT TO SAY THIS
IS ONE OF THE MOST SPECTACULAR
EARNINGS BEAT I'VE SEEN YOU
KNOW,
MAYBE ZOOM THAT WE SAW A COUPLE
MONTHS MIGHT BE A LITTLE BIT
BETTER BUT THIS IS YOU KNOW