Stocks in Play - February 7th 2025

TLDR Stocks in Play: PINS, EXPE, ELF, BILL

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

If you find this Newsletter helpful and ever want to say thank you then feel free to Buy Me a Coffee. It’ll inspire me to work faster….

Trialing including a link to charts posted on X of how I see it. Could also potentially just link to TradingView but conscious that many don’t use that platform. Would love some feedback on here. I am reluctant to include images in the newsletter as I feel everyone has their own way of looking at a chart and different time frames so want to leave it very much ‘‘optional’’.

1) Expedia (EXPE) (Rating: B+, Multi-Day)

Industry Group: Consumer Services, Market Cap: $21.3b, Float: 129m, Short Interest: 4.5%, Days to Cover: 3.5, Exchange: NASDAQ

Catalyst: Strong Beat on EPS ($2.49 vs est $2.09), Slight Beat on Revs, Beat on EBITDA Margins. Initiating Dividend, Increased Stock Buy back. Bullish management commentary. I see room to at least $200 here. A perfect $190 Gap Open would be nice. This will be a good candidate for a delayed reaction. (Link to EXPE Chart)

2) Pinterest (PINS) (Rating: A, Multi-Day Top Pick February🐸 )

Industry Group: Technology Services, Market Cap: $19.90b, Float: 580m, Short Interest: 5%, Days to Cover: 2.5, Exchange: NASDAQ

Catalyst: Miss on EPS ($0.56 vs est. $0.65), Slight Beat on Revs, Beat on Revs Guide, Solid EBITDA Beat, It’s all about the story here, MAUs (Monthly Active Users) Up 11% YoY. Bullish Management Commentary 2024 a ‘‘Banner Year’’ for Pinterest, Conversion of User engagement into sales was up 90% YoY, The narrative is setting up PINS as an AI Winner and META Rival. ARPU up 8% YoY. These KPIs are key in any move for Pinterest. Makes the top pick list for February. $40 may act as a wall today but strong potential for delayed reaction. (Link to PINS Chart)

Honorable Mention to: BILL - Sales Inline, Beat on EPS & Operating Income, Big Beat on Total Payments Volume. Raised Full Year Guide on Revs and EPS. Slight Miss on Q3 Guide. Stock is down 30% Pre Market. This seems like quite the overreaction to me. 7% Short Float relatively meaningful. (Link to BILL Chart) ELF - Former darling is getting crushed (again) on a Guidance Revision down. Coming right back to the original 2023 Breakout Point. I prefer BILL for a bounce but this is worth monitoring also. High Short Interest, could be a lot of profit taking this morning. (Link to ELF Chart)

Have a Great Weekend!

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK, AVGO

• Top Picks - January 2025 

  • LONG: CEG, FUBO, BLK, GE

• Top Picks - February 2025 

  • LONG: MAT, PINS

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.}