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The cloud has become essential for businesses and individuals alike. Cloud technology powers some of our favorite websites and apps, simplifies business operations, and gives us the secure storage space we need for an ever-growing mountain of files. Considering we’ll probably never stop adding data to our lives, you need a great cloud storage solution that won’t break the bank. A lifetime subscription to Prism Drive Secure Cloud Storage should fit the bill.
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User Amir Khulad writes, “Easy to download and use. I bought 2TB for one year and this will help keep all my data safe in one location and give me the easy access I need to use it.”
If you’re in need of cloud storage that won’t break the bank, consider Prism Drive Secure Cloud Storage. Right now, you can get a lifetime subscription to 2TB of cloud storage space for just $49.
Opinions expressed by Entrepreneur contributors are their own.
To avoid burnout, maintain sleep quality and secure sanity it’s necessary to consider strategies beyond a “power nap.”
It is first important to understand what’s depleting your low afternoon drive.
Think of your energy as water in a bucket. After a night of quality sleep, you wake feeling refreshed and start your day with a jug that’s full. Throughout the morning, you expend energy. By the time afternoon rolls around, the water in your bucket has decreased.
The overall amount depends on two things: A) how active you’ve been (physically, mentally or emotionally) and B) how big your bucket was to begin with.
If your H20 holder is small, via illness or insufficient sleep the night before, take note of the following brain boosting hacks.
Related: How to Wake Up Early
Dehydration is an overlooked, yet common contributor to feeling fatigued (and often confused with sleepiness). Refill your bucket with a tall glass of actual agua.
It’s common to reach for hyper-palatable foods (i.e. those high in sugar or fat) to help power through an afternoon. A more energy-sustaining choice is a macronutrient-balanced snack. Taking an uninterrupted 20-30 minutes away from workspaces to receive pleasure from your grub comes with the added benefit of feeling nourished.
Vary your tasks
If you’ve been sitting at your computer and using mental energy all morning, it’s useful to get physical in the afternoon. While a walk outside in daylight may be enjoyable and useful for helping you sleep at night, this technique doesn’t necessarily imply exercise. If you’re working from home, you can do something simple like emptying the dishwasher.
Engage in what excites you
Boredom can masquerade as low energy. Have the types of challenges that originally interested you been solved or otherwise delegated? Are you spending your afternoons in aspects of your business you find routine or tedious? Reconnect with something you’re deeply passionate about and you’ll notice your energy soar.
Float in the trough
Set a timer for 10-15 minutes, close your eyes, and lie down on your back with your feet flat and knees bent. This position is called “constructive rest” because it helps to release tense muscles, relieve eye strain and induce a “relaxation response” in the nervous system. If you’re unable to honor and surrender to your mind-body’s need for rest during the day, it’s likely you’ll struggle with being still at night. Therefore, becoming a skilled “rester” may have the welcomed side effect of improving your sleep.
If you also have an over-achieving personality, it may be even more beneficial to set more reasonable expectations about what can get done in a day. Related: 4 “Unproductive” Habits That Make You More Productive
Navigate your night
This might mean increasing your sleep opportunity (i.e. giving yourself more time in bed for added REMs) or unpacking less obvious contributors to insomnia challenges.
Just as there are many reasons why you may feel wide awake at 3 am, there can be many causes for feeling “low and slow” in the afternoons. It’s important to consider the underlying reasons and to adapt your strategy (and techniques) to your situation.
Making more skillful choices about your afternoon energy will not only help you in the second half of your day, but will also preserve your nightly sleep and help you maintain long-term health and well-being.
Related: 4 Changes to Make to Your Day so You Get Better Sleep Tonight
Choice Hotels (CHH) is one of the top hotel stocks due to its unique business model which ensures high margins. Additionally, travel stocks will benefit from pent-up demand for travel in the coming quarters.
There are a lot of reasons for investors to be fearful of at the moment. War continues to rage between Ukraine and Russia. The Fed is laser-focused on bringing down inflation. This hawkishness and increasing concerns of a slowdown in economic growth have resulted in stocks plunging lower.
Despite the increasing bearish sentiment, investors should remember that some of the best investment opportunities are birthed during these episodes of fear when markets are cascading lower. And, these opportunities are often found in finding companies, with improving fundamentals, that are exposed to bullish secular trends that are disconnected from economic or geopolitical factors.
Today, I want to talk about such a company – Choice Hotels (CHH). CHH is benefiting from a massive boom in travel which should continue over the next couple of years. Further, the company has a favorable business model for investors and should continue seeing margins and earnings trend higher. Revenues have also returned to pre-pandemic levels even with many categories of travel far from pre-pandemic levels.
Read on to find out why CHH is my growth stock of the week..
While Choice Hotels may not be familiar to most people, its many brands certainly are. Some off the most well-known include Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, and MainStay Suites. As of the start of the year, the company had nearly 600,000 rooms in all 50 states and 40 countries.
It operates in two segments: Hotel Franchising; and Corporate & Other. It franchises all of its properties, and it also has a unit dedicated to selling its cloud-based, software for property management to other hoteliers.
CHH gives investors operating leverage due to its business model. As a franchisor, it has higher profit margins than its peers. For instance, it had 26.9% profit margins last quarter, while competitors like Marriot (MAR) and Hilton (HLT) had profit margins of 7.9% and 7.1%, respectively.
Another source of operating leverage is its growing, software business which is growing at a double-digit rate with increasing adoption and use. These types of SaaS products can become integral to operators which creates future opportunities to raise prices and provide more features for additional monetization.
For these reasons, CHH is pretty unique among hotel stocks.
This operating leverage means that CHH will see significant earnings growth as the travel market booms this summer and into 2023. Already, there are reports of record demand among airlines and cruises as the coronavirus continues to recede as a major issue.
TSA travel data shows that travel volumes are about 10% below pre-pandemic levels despite impairment in business and international travel and airlines operating at a lower capacity. Given such developments, it’s likely that we are in the early innings of an unprecedented boom in travel with pent-up demand that should persist for many quarters.
Another catalyst for CHH is that its margins are likely to expand due to growth in its software business. Further, the company is less affected by inflation due to its franchising model. Higher margins are supportive of multiple expansion, while the recovery in travel is supportive of revenue growth.
CHH is a company with multiple positive tailwinds in place. Recent market volatility is creating an opportunity to buy shares at an attractive valuation.
In addition, the POWR Ratings are also very positive on the stock as it’s rated a B which translates to a Buy. B-rated stocks have posted an average annual return of 21.1% which compares favorably to the S&P 500’s average annual return of 8%.
It also has strong component grades including an A for Quality due to its success in increasing margins and investor-friendly business model. It has a B for Growth which is consistent with its organic growth and the cyclical boost as pent-up demand for travel is unleashed in the coming years. Click here to see more of CHH’s POWR Ratings including component grades for Value and Momentum.
What To Do Next?
If you’d like to see more top growth stocks, then you should check out our free special report:
9 “MUST OWN” Growth Stocks
What makes them “MUST OWN“?
All 9 picks have strong fundamentals and are experiencing tremendous momentum. They also contain a winning blend of growth and value attributes that generates a catalyst for serious outperformance.
Even more important, each recently earned a Buy rating from our coveted POWR Ratings system where the A rated stocks have gained +31.10% a year.
Click below now to see these top performing stocks with exciting growth prospects:
9 “MUST OWN” Growth Stocks
CHH shares were trading at $142.50 per share on Wednesday afternoon, up $1.57 (+1.11%). Year-to-date, CHH has declined -8.36%, versus a -10.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Jaimini Desai
Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of the POWR Growth and POWR Stocks Under $10 newsletters. Learn more about Jaimini’s background, along with links to his most recent articles.
The post Here’s Why Choice Hotels is a Top Pick for the Rest of the Year… appeared first on StockNews.com
Check Out These Stocks That Are Set to Outperform in a Recession
If the market is truly a forward-looking mechanism, then investors should certainly take notice of the fact that recession-proof stocks have been showing serious strength in recent trading sessions. These are companies that operate in industries like consumer staples and utilities, which are known to hold up well during economic downturns. They can also offer investors reliable earnings, fortified balance sheets, and dividend payouts, which are all very attractive qualities in a market chalked full of uncertainty. With the Federal Reserve tightening its monetary policy to combat inflation and equity markets exhibiting plenty of volatility, there’s certainly a chance that a recession might be on the horizon. Bank of America chief investment strategist Michael Hartnett recently wrote to clients that a “recession shock” could be coming, which certainly doesn’t sound like a good thing for many areas of the market. That’s why it might be a good idea to focus on investing in companies that have a reputation for being resilient during a weak economy, particularly since these stocks are seeing such strong demand from buyers at this time. Without further ado, here are 3 great recession-proof stocks to buy now:
Walmart might just be the quintessential recession-proof stock, and with shares breaking out to new all-time highs after almost an entire year of consolidation it’s one to definitely keep an eye on. As the largest retailer in the world, there are so many things for investors to love about this business. Walmart operates a chain of more than 11,000 discount department stores, wholesale clubs, supermarkets, and supercenters that should see steady sales during a recession as consumers look to save money on their everyday purchases. The company has also been investing big in its omnichannel retail experience, which should pay off in a big way over the years. Investors should note that Walmart recently posted Q4 adjusted EPS of $1.53, up 10% year-over-year, and guided for 4%-plus sales growth for next year, another reason to consider adding shares. Finally, Walmart has a very reliable history of dividend increases and is a dividend aristocrat, which tells investors that they can rely on the company to help generate income over the years. The stock currently offers a 1.43% dividend yield and is a great buy-the-dip candidate to consider going forward.
Johnson & Johnson (NYSE: JNJ)
The healthcare sector is another great place to look for recession-proof stocks, as these companies see steady demand for their products regardless of what’s going on in the economy. Johnson & Johnson stands out as one of the top options in the sector given its blue-chip status, dividend aristocrat status, and strong year-to-date outperformance versus the S&P 500. It’s a global leader in the pharmaceutical, medical device, and consumer health care products industries and a company that is clearly in favor with investors at the moment. The company generates the majority of its revenue from its pharmaceutical segment, which offers a nice combination of best-selling drugs like Stelara and Imbruvica along with a strong drug pipeline. If one of the company’s future drugs is a success, it could mean massive earnings growth is on the horizon, which is a big reason why biopharma stocks like this one are so attractive. Hospital visits and elective surgeries should also be on the uptick as the impacts of the pandemic wane, which is another positive for Johnson & Johnson going forward. In Q4, total sales for the company increased by 10.4% year-over-year to nearly $25 billion, which means that more good results could be on the horizon for this recession-proof stock.
Procter & Gamble Co (NYSE: PG)
Think about the daily-use household, personal care, and food and paper products. These are items that every single consumer in the world needs to buy consistently, which is why a stock like Procter & Gamble is so intriguing. It’s a consumer staples company that has developed major brands like Tide, Gillette, Pampers, Bounty, Crest, Ivory, Oral-B, Tampax, Charmin, and more. Since this company’s products benefit from inelastic demand, investors can count on Procter & Gamble to put up decent earnings even in a recession. What’s even more important, it’s a company that will be able to cover its dividend payouts in almost any economic cycle. Procter & Gamble has been benefitting from the pandemic in recent quarters as more consumers purchased cleaning products, while the company posted its 14th consecutive quarter of mid-single-digit revenue growth last February. With a 2.19% dividend yield and a diversified operating model, this is perhaps the strongest consumer staples stock in the market to consider adding at this time.
Walmart is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.
Did you haul off and buy a recreational vehicle (RV) during the pandemic? If not you, one of your neighbors likely did, or maybe someone else you know made the plunge.
Annual RV shipments dropped 16% from 483,700 in 2018 to 406,000 in 2019, according to the RV Industry Association. Production was up in 2020, with 430,412 shipments for the year but still weren’t quite up to pre-pandemic levels. By the end of 2021, shipments logged 600,240, surpassing total annual production at any time.
Let’s learn more about why we should buy RV stocks and three great RV stocks you may want to purchase while the getting’s good.
Why Buy RV Stocks?
Despite high gasoline and diesel prices, RV purchases have continued unabated across the U.S. Continued consumer demand and consumers’ desire to continue to experience an active outdoor lifestyle.
Nearly two-thirds (64%) of campers expect to take a camping trip in 2022. The KOA Monthly Research Report from March reports that one in five campers plan to take a spring break. More than half of campers have already booked trips for this year and the look ahead for 2022 is strong.
KOA will release its annual North American Camping Report this month. According to experts, campers and leisure travelers will continue to turn to the outdoors as COVID-19 wanes.
3 RV Stocks to Invest in Right Now
You’ll see lots of reports from 2020 and 2021 urging consumers to buy RV stocks and you might think you’ve missed the boat. Not so. Check out our top three picks for RV stocks to purchase right now.
Winnebago Industries Inc. (NYSE: WGO)
Winnebago Industries Inc., headquartered in Forest City, Iowa, manufactures and sells recreation vehicles and marine products for use in leisure travel and outdoor recreation activities. The company operates six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine and Winnebago Specialty Vehicles.
Towable products: Including non-motorized vehicles, the company produces products to be towed by automobiles, pickup trucks, SUVs or vans for recreational travel, including conventional travel trailers, fifth wheels, folding camper trailers and truck campers under the Winnebago and Grand Design brand names.
Motorhomes: Self-propelled mobile dwellings used primarily as temporary living quarters during vacation and camping trips.
Specialty commercial vehicles: Winnebago produces law enforcement command center vehicles, mobile medical clinics and mobile office spaces; commercial vehicles as bare shells to third-party up fitters; and boats in the recreational powerboat industry under the Chris-Craft and Barletta brand names.
Equipment manufacturing: The company also manufactures parts for commercial vehicles and sells through independent dealers in the United States, Canada and internationally.
Winnebago shored up second quarter revenues of $1.2 billion, an increase of 39%, including robust organic growth of 29%. The company reported a quarterly diluted EPS of $2.69 and adjusted EPS of $3.14, which is up 42% over the prior year. RV retail market share gains also increased, to 14.3% and $72 million in cash was returned to shareholders.
Camping World Holdings (NYSE: CWH)
Camping World Holdings Inc., headquartered in Lincolnshire, Illinois, retails recreational vehicles (RVs) and related products and services under its Good Sam Services and Plans and RV and Outdoor Retail segments. The company offers the following:
RV industry products and resources
Extended vehicle service contracts
Roadside assistance plans
Property and casualty insurance programs
Travel assist travel protection plans
RV and outdoor related consumer shows
RV-focused consumer magazines
New and used RVs
RV repair and maintenance services
RV parts, equipment, supplies and accessories
Supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding and marine and watersports equipment and supplies
The company operates over 180 retail locations in 40 states through its dealerships and online and e-commerce platforms.
In 2021, revenue was $6.9 billion, an increase of $1.5 billion from last year (26.9%). Gross profit was $2.5 billion, an increase of $753.8 million, or 44.3%. Net income was $642.1 million, an increase of $297.9 million, or 86.5%. Net income margin was 9.3% for 2021 versus 6.3% for 2020.
Adjusted EBITA was $942.1 million, an increase of $377.1 million, or 66.8%, and adjusted EBITDA margin was 13.6% for 2021 versus 10.4% for 2020.
During 2021, the company opened 16 locations, which included twelve RV dealerships acquired in 2021, three RV dealerships acquired in 2020 and one greenfield location.
The company also increased its regular quarterly dividend to holders of Class A common stock from $0.23 per share to $0.50 per share — from $0.92 per share to $2 per share on an annualized basis. On February 18, the company’s board of directors authorized a 25% in quarterly dividends.
In Q4, revenue was a recorded $1.4 billion, an increase of $243.8 million, or 21.5%. Gross profit was $484.6 million, an increase of $106.6 million, or 28.2%. Net income was $59.3 million, an increase of $18.9 million, or 46.9%.
LCI Industries (NYSE: LCII)
LCI Industries, headquartered in Elkhart, Indiana, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It has two segments:
OEM segment: LCI Industries’ OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components, axles and suspension solutions, slide-out mechanisms, bath and kitchen products, vinyl, aluminum and frameless windows; manual, electric and hydraulic stabilizer and leveling systems as well as entry, luggage, patio, and ramp doors. It also features furniture and mattresses, electric and manual entry steps, awnings and awning accessories, towing products, truck accessories, electronic components, appliances, air conditioners, televisions and sound systems. It produces items for RVs, buses, boat trailers, livestock equipment, trucks, boats, trains, manufactured homes and modular housing. In addition, it makes parts for travel trailers, fifth-wheel travel trailers, folding camping trailers and truck campers.
Aftermarket segment: This segment supplies RV components to retail dealers, wholesale distributors and service centers as well as replacement glass and awnings to fulfill insurance claims. It also provides biminis, covers, buoys and fenders to the marine industry.
In the Q4 2021, the company showed record net sales of $1.2 billion, up 55% year-over-year and record net income of $82.3 million, or $3.22 per diluted share in Q4, up $33.6 million, or 69%, year-over-year. The company had an adjusted EBITDA of $146.3 million, up $58.2 million, or 66%, year-over-year.
In the full year 2021, record net sales topped $4.5 billion, up 60% year-over-year with net income of $287.7 million and adjusted EBITDA of $511.7 million, up $183.5 million, or 56%, year-over-year.
The company returned $87.2 million to shareholders through dividends.
Get Excited About RV Stocks
Everyone else is excited about the 2022 season, so why not take advantage of the buzz, especially if you’re an avid RVer yourself? Pop some stocks into your portfolio while you’re at it and enjoy the benefits of dividends as well.
Opinions expressed by Entrepreneur contributors are their own.
Psychologists have long studied what makes people “happy.” The technical term is “subjective well-being” (SWB) or a person’s own opinion of how happy they are — and whose else’s opinion matters, really?
So what did they find out makes people happiest? Winning the lottery? Early retirement? Lounging on the beach for weeks on end?
Interestingly, no. According to Carleton University psychology professor Dr. Timothy A. Pychyl, writing in Psychology Today:
The consensus based on the psychology of action and personal goals clearly indicates that the successful pursuit of meaningful goals plays an important role in the development and maintenance of our psychological well-being. To the extent that we’re making progress on our goals, we’re happier emotionally and more satisfied with our lives.
In other words, we feel the most happy when we’re making progress towards a clearly defined goal. Mihaly Csikszentmihalyi explores this phenomenon in his book Flow State. He interviews athletes, entrepreneurs, artists and other high performers about the feeling of being “in the zone”—time slows down, the outside world melts away, and nothing matters but the work.
Same freezing basement, whole new attitude
So what makes people unhappy? It’s not a lack of money and it’s not a lack of time. It’s the lack of a clear goal to work toward. With a clear goal to work toward, money doesn’t matter. The failures of the past don’t matter. All that matters is progress toward that goal.
I experienced this in my own development. At my lowest point, I was working at home in my freezing basement in rural Pennsylvania, with a plastic paint bucket for a chair. I had a dozen businesses in various stages of half-baked. I was miserable. But when I ditched all of the businesses but one, something happened. I was thrilled, in the zone, my eyes focused laser-like on the prize.
Nothing had changed about that damned refrigerator of a basement. Nothing had changed about that painful paint bucket. I still hated them. What changed was that I was no longer miserable. I was on a mission. And I built that business to six figures in less than a year, and seven figures in less than four. Now I live in Florida and I have a proper office chair. It’s comfy.
Related: Why Struggle Is a Good Thing, Even If We Never Want It
Sailors without a rudder
Most people rarely find “the zone” as described by Csikszentmihalyi. They instead live in an anti-zone of confusion, without a clear goal. Their employers make most of their decisions for them; they work dutifully and even happily toward someone else’s goal. Or they may run like hamsters on a wheel to support a family or save for retirement, their only purpose to stave off financial ruin.
In their personal lives, they resort to Netflix and buying new toys, hoping for happiness but lacking the one thing that will give it to them: a clear goal to work toward. When they set out to be in business for themselves, they’re like sailors without a rudder. Left to set their own sail, they go in a million different directions, only to end up right back where they started and more frustrated than ever.
Related: The Biggest Hidden Cause of Burnout (and What to Do About It)
What’s the question?
When I have Q&A calls with my students, I can always tell the ones who haven’t defined the problem. When it’s their turn to ask a question, they start telling a rambling story. Out of respect for everyone’s time, I often cut them off as politely as possible and ask, “What’s the question?” And it usually boils down to, “What do I do?”
Not much to work with. Clearly, we haven’t defined the problem. Sometimes I push a little further into the details of their life and find utter chaos: a messy kitchen; an unmade bed; a million apps on their phones pushing them notifications; halfway through 16 online courses; 12 pages into five books with six more coming from Amazon; five half-baked businesses launched and ideas for 10 more.
My job as a coach is now clear. First, help them clear out the clutter, boil their activities and their environment down to the essentials. Next, help them define the problem. Find the one outcomethey want to achieve, and then define the one processthat will get them there.
Once they define the problem, psychology and SWB kicks in and starts to work its magic. With the confusion dispelled and replaced with clarity, their morale improves about 1,000%, as does their motivation to actually do the work. After all, they now know exactly what they are supposed to do and why.
Related: What to Do When You’re Feeling Blue, or Blah, About Work
What’s the solution?
For most of my students, the goal is a prosperous business and financial freedom. I can relate to that. If that’s the problem, there’s a simple solution: Make a sale. Websites, business cards, email autoresponders…they’re all useless if you never make a sale.
Easy, right? Not so fast. To make a sale, you need product-market fit. So the one thingI encourage my students to focus on firstis confirming product-market fit. Once you thread that needle, your work is 90% done anyway. Confirming product-market fit takes three steps:
Talk to your target market, listening to their problems and looking for one you can solve.
Devise a solution to their problem.Don’t build it yet. We’re still confirming product-market fit. There’s one step left….
Ask members of your target market to pull out their credit card and buy it. Right now.
That’s how you confirm product-market fit, that you have a product so in-demand that your prospects buy it before it’s even developed — just to have first crack at it.
Forget everything else. The one thing is to solve that problem, and you’re in business.
Digital advertising technology (AdTech) platform Pubmatic (NASDAQ: PUBM) stock has fallen below its pandemic lows accelerated by the macro market sell-off. The digital advertising supply chain platform-as-a-service (PaaS) provider has doubled its sales in the past two year to turn profitable and expects 35% adjusted EBITDA margins for fiscal 2022. The tailwinds continue to accelerate for Pubmatic as the digital advertising market grew nearly double pre-pandemic levels and 31% in 2021. This growth is expected to be permanent, not transitory. E-commerce is expected to grow 17% annually for the next four years driven by online grocery shopping adoption by consumers. The addressable market for advertising continues to expand as its closed television (CTV) business has grown 6X processing 90 trillion impressions for full-year 2021. However, the Company lowered it fiscal 2022 revenue guidance reflecting 25% growth causing shares to collapse. Prudent investors seeking adtech exposure can watch for opportunistic pullbacks in shares of Pubmatic.
Q4 Fiscal Year 2021 Earnings Release
On Feb. 28, 2022, Pubmatic released its fiscal fourth-quarter 2021 results for the quarter ending December 2021. The Company reported an earnings-per-share (EPS) profits of $0.50 beating analyst estimates of $0.27 by $0.23. Revenues rose 34.5% year-over-year (YoY) to $75.6 million, beating analyst estimates for $75.47 million. Pubmatic Co-founder and CEO Rajeev Goel commented, “For the second consecutive year, we delivered an incredible combination of revenue growth and profitability. Organic revenue growth in 2021 was 53% over last year, reflecting significant market share gains in a large and rapidly growing market,” said Rajeev Goel, co-founder and CEO at PubMatic. “PubMatic delivers the digital advertising supply chain of the future where both publishers and buyers can maximize value. Our infrastructure-driven approach, combined with our usage-based software model, strengthens our competitive advantages and funds continuous innovation and investment in future growth. This flywheel underpins our strong position in the market, and I couldn’t be more excited about the number and magnitude of growth opportunities in front of us.”
Mixed Guidance Estimates
Pubmatic lowered revenue guidance to come in between $53 million to $55 million versus $56.66 million consensus analyst estimates for fiscal Q1 2022. The Company provided in-line guidance for fiscal full-year 2022 revenues to come in between $282 million to $286 million versus $283.48 million consensus analyst estimates.
Conference Call Takeaways
CEO Goel detailed its record Q4 results highlighting the strong 51% adjusted EBITDA margin and 34% organic revenue growth. He commented, “PubMatic is committed to delivering the digital advertising supply chain of the future where both publishers and buyers can maximize value. As an independent technology company focused on the best interests of the publishers, we provide a platform that connects disparate parts to the ecosystem with robust audience addressability solutions, and cross-screen targeting that power the open Internet. And our infrastructure-driven approach is delivering superior outcomes and cost efficiencies that both our customers and we benefit from.” The Company had an estimate 2% to 3% market share of the digital advertising market upon its IPO in December 2020. In a single year, it has grown its estimated market share to 3% to 4%. A 1% shift in a year’s time is significant as the addressable market continues to grow. Ultimately, CEO Goel wants to achieve 20% market share or more. This will be driven by Supply Path Optimization (SPO) with omnichannel formats and customers, audience addressability, and global expansion. The Company grew its SPO partners by 44% in 2021.
PUBM Opportunistic Pullback Levels
Using the rifle charts on the weekly and daily time frames provides a precision near-term view of the playing field for PUBM shares. The weekly rifle chart indicates a bearish inverse pup breakdown after peaking near the $31.73 Fibonacci (fib) level. The weekly 5-period moving average (MA) is falling at $25.58 followed by the 15-period MA at $28.73 with 50-period MA falling at $33.11. The weekly lower Bollinger Bands (BBs) are at $14.01 as the stochastic crossed down on a rejection of the 30-band. The daily rifle chart downtrend has a falling 5-period MA at $20.72 with falling 15-period MA at $24.31 and daily lower BBs at $15.76. The daily market structure low (MSL) buy triggers on a breakout through $22.71. Prudent investors can watch for opportunistic pullback levels at the $17.19 fib, $16.19 fib, $14.83 fib, $13.86 fib, $12.60, $11.49 fib, and the $10.55 fib level. Upside trajectories range from the $26.74 fib level up towards the $34.90 fib level.
Opinions expressed by Entrepreneur contributors are their own.
It’s not surprising how the word metaverse finds its way into newer technological discourses. We have heard top CEOs such as Mark Zuckerberg and Satya Nadella talk about it. Whether you are a vetted internet expert or a casual lurker, chances are you might have heard of the metaverse too.
The word is booming, and so is its value — according to a Bloomberg report from December 2021, the metaverse market will grow to nearly $800 billion, further reinstating the rising interest in shared worlds, 3D interactions, the convergence of digital and physical worlds, data synchronization and more.
The promising financial and advertising value in the metaverse has brands jumping into the game. While online game makers and social media platforms might be seen leading the space, there’s ample room for luxury brand growth too — many of these have already started initial concepts for their participation in the metaverse.
Metaverse in numbers
38% of American adults have heard of Facebook’s VR project metaverse — 11% admitted to having heard about Facebook going ahead in this direction
The global augmented reality (AR) and virtual reality (VR) market size is forecasted to have crossed $30 billion in 2021 to reach close to $300 billion in 2024
27% of US respondents between the ages of 18 and 34 said they were very interested in virtual reality, against 46% who said they were not interested.
Opportunities for luxury brands in the metaverse
Integration and user experience fluidity is a crucial component for the metaverse — something that syncs well with the aspirations of the luxury industry.
Staying relevant to evolving tech
Many luxury companies are riding the metaverse storm and finding ways to stay relevant with emerging technologies. With NFT sales totaling around $25 billion in 2021, Milan-based luxury fashion house Dolce & Gabbana set a record by selling a nine-piece NFT collection at $5.7 million, marketing them as “gems that can’t quite be found on earth.” Similarly, Nike has built Nikeland on Roblox’s platform to enable people to try virtual sneakers. Nikeland is “enhanced by real-life movement’ to encourage physical activity in visitors.
Finding a sustainable lens
The high price of Dolce & Gabbana’s NFT doesn’t come as a surprise, considering some top designers worldwide crafted it. Exclusivity adds a specific appeal to virtual products, which already hold some value in an industry that’s notorious for its waste generation. Digital fashion app DressX released a report revealing that the carbon footprint of one digital item was 97% less than that of a physical garment. Meanwhile, according to the report, the fashion industry contributes to 10% of the global carbon dioxide emissions.
Overstock can be challenging for starting brands and could limit them from presenting a full range of designs. With 3-D product renderings, users can place a confirmed order for the company to deliver it to them — and luxury brands are adapting well. Luxottica offers visitors an online shopping experience “comparable to the real one” with the aid of augmented reality. They also allow users to take photos of the new look and share it with their network, expanding marketing channels.
Digital spending has seen a rising trend. According to a Statista report, the number of digital buyers has gone up worldwide with big margins — in 2021, over 2.14 billion people purchased online compared to 1.66 in 2016. Since there’s less product cost in digital products, the model can be profitable in the long run.
Riding the 5G wave
The metaverse is tomorrow’s infrastructure. The rise of 5G can further push augmented reality (AR) and virtual reality (VR) into digital products, headsets, bots and more. The idea has been to have a seamless ecosystem across gadgets, and the participation of tech giants such as Google, Microsoft and Apple, along with the many startups and other larger companies, will determine how expanding 5G coverage could run the early projects of the metaverse.
Related: The Pandemic Gave Luxury Brands a New Code of Conduct
Examples of luxury brands exploring the metaverse
Gucci and Roblox hosted a two-week art installation at the Gucci Garden where visitors could try and purchase digital products to dress their avatars while walking through rooms themed with brand campaigns
Coca Cola and Friendship Box released NFTs that made millions
Louis Vuitton launched an adventure game based on paying homage to its founder. Players could find “precious” NFTs
Balenciaga at Fortnite: Fortnite players can now purchase digital Balenciaga merchandise inspired by real-life pieces. The hub allows players to hang out with each other virtually.
Related: The Rise Of Responsible Luxury
How luxury fashion brands can grow in the metaverse
Successfully selling an NFT is one thing, but setting the course towards the metaverse is another. The process could be expensive in stages, but established brands could look at metaverse as an ever-growing opportunity to connect with their audience.
Reviving old designs
Companies have an extensive archive with designs that they cannot always use. Having a digital library of designs would help reintroduce them for a trend check and even make money selling them as iconic designs.
Sell NFT merchandise
Avatar and fashion community Genies partnered with Universal Music Group to release their full roster of digital avatars. A Genies representative told Coindesk that the company’s purpose is to sell items costing anywhere between $3 to $15 to Gen Z audiences. Luxury brands could capitalize on this opportunity and release their exclusives. Similarly, many other NFT platforms are emerging in partnerships with other brands and celebrities.
Avoiding the big leap
It can be tempting to jump into the many pools of opportunities that can introduce the brand to the metaverse. Many believe that it’s still a far-away dream. Matt Moorut, a senior principal analyst at Gartner, told Vogue Business that most consumers still don’t regularly engage with the virtual world, especially among the older age group. The fact that a market still exists for that segment — a rather large one — should not discourage brands from exploring the space.
Sharing resources and promoting user safety
There needs to be transparency around digital assets used in the metaverse. Brands can form partnerships in this space to develop something new and work on a common platform for a new project. Brands could share blueprints of the open metaverse between them to initiate discussions around how brands should share resources and services. Besides, it will also help build initial standards and digital frameworks. Privacy and user safety will be a greater priority, so brands should not compromise production over exclusivity and quality.
Related: How and Why Luxury Brands Should Embrace TikTok
Market indexes raced northward in the final minutes of regular trading today, with mixed results on either side of within 1%. The Dow, which had been -589 points at its intraday low, came in -179 points or -0.53%. Big banks with Russian exposure — Goldman Sachs GS and JPMorgan JPM — helped lead the index down. The S&P 500 came in -0.26% on the day. Both indexes finished lower for the first regular session in the past three. The Nasdaq, on the other hand, gained +0.41% after wallowing in the red a little more than an hour before the close. The small-cap Russell 2000 was up +0.35% on the day. Both indexes are up for a third-straight day, although all four major indexes close its second month in a row in the red. Treasury yields dropped, and the 10-year and 2-year track slightly closer together today — 1.83% and 1.45%, respectively. Russian banks being taken off the SWIFT program looks to be the biggest instigator in shakiness regarding financials; mostly, we see uncertainty planting the flag today — there doesn’t seem to be a lot of clarity where things go from here. Much of it rests on what Russian leader Vladimir Putin decides to do as his invasion of Ukraine brings the impact of world sanctions against his country. Energy was the only sector to gain today, and clearly we’ve seen strength in oil & gas going back prior to the Ukraine invasion. But solar power companies also posted strong gains, as alternative sources of energy not only look increasingly viable these days, but increasingly necessary. Environmentalists have been sounding this horn for decades, of course; now geopolitical experts are weighing in on it, as well. Zoom Video ZM beat estimates on both top and bottom lines in its Q4 report: earnings of $1.29 per share on sales of $1.07 billion outpaced the $1.07 per share and $1.05 billion, respectively. Yet earnings guidance for Q1 is a big pullback to 86-88 cents ($1.03 per share had been the Zacks consensus), with downgrades in revenue and full-year guidance, as well. Zoom shares dropped as much as -11% in late trading; the stock is already down -28% year to date and -67.6% from a year ago. Zoom did announce a $1 billion share buyback program, which certainly the company expects to stem the tide of selling. In fact, the late-session selling has abated notably: ZM shares are now -4.5% after hours. The company has never missed an earnings estimate going back to the company’s 2019 IPO. Hewlett-Packard HPQ also reported earnings after the closing bell this Monday: earnings of $1.10 per share beat the $1.04 estimate in the company’s fiscal Q1, as revenues of $17.03 billion swept past expectations for $16.76 billion. Its PCs business outperformed expectations — $12.2 billion versus $11.6 billion anticipated — while its printing business lagged somewhat. Shares are relatively flat on the news after jumping initially. Shares are down -9.6% year to date but +16% from a year ago. Questions or comments about this article and/or its author? Click here>>
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For many people, success is synonymous with wealth or celebrity. Consequently, libraries and booksellers offer thousands of books, studies and articles with advice on how to get rich.
Authors of get-rich schemes target a growing audience that believes there is hidden knowledge about accumulating wealth. The gullible spend thousands of dollars in a quest to find a guru willing to disclose the formula for amassing wealth. Modern authors have flooded store shelves with their advice, tips and secrets, capitalizing on the demand. Their audiences overlook the reality that money flows not to the buyer of a book or attendee at a seminar, but to the author and presenter.
The need for action
Wealth is not gained by passively reading or listening, but by action. Knowledge is potential or stored energy, essentially worthless until used and turned into deeds. Actions — not thoughts — create wealth by developing a new industry (like Elon Musk) or investing (like Warren Buffett).
There are no secrets or shortcuts to riches (excluding marriage to a wealthy spouse). However, those at the top of the financial pyramid typically exhibit specific characteristics.
Four critical traits of wealth building
The habits of those who achieve uncommon success are not inherited but learned and practiced. Instilling these traits is neither easy nor difficult but deliberate and continuous. While some might have natural tendencies for one or the other attributes, they are available to everyone.
Everyday life is full of distractions on every level. Some are significant, but most are inconsequential. Focus is the ability to set a goal and concentrate solely on it until achieved. The acquisition of wealth is a journey of years, if not a lifetime. While good luck can affect the length of travel, the gift of sudden fortune is granted very few.
Most fortunes are built slowly by consistently investing a portion of one’s earnings wisely. Focus on your destination, and you avoid the lost time, energy and capital of detours, wrong directions and chance. Paul Samuelson, the first American to win the Nobel Prize for economics, advises, “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
Related: 5 Ways to Create Wealth by Investing in 2022
The yin to the yang of focus is self-discipline, which is the ability to control one’s thoughts and actions. Some have also defined discipline as “the ability to defer gratification.” Investment requires saving a portion of your income regularly for tomorrow, like, denying the instant pleasure of today’s purchase. Those who cannot control their spending rarely make or keep a fortune.
Most successful people are not extraordinarily gifted or have genius-level IQs, but ordinary people who learn to link today’s actions with tomorrow’s results. To paraphrase humorist Will Rogers, self-discipline enables you to avoid spending money that you don’t have to buy things that you don’t need to impress people you don’t like.
Many confuse knowledge with expertise. The former comes from reading and experience; expertise is an ability to use knowledge to obtain specific outcomes.
An example of the difference is that between a physician and a surgeon. Both are medical doctors, though physicians lack the skill gained from hours in an operating room while managing the patient’s overall health. Similarly, surgeons usually lack the general diagnostic skills of the physician. Both occupations require specific expertise to excel at their profession. Experts recognize and compensate for potential complications or failure, adjusting as needed to stay on course.
Successful investors need knowledge of such disciplines of accounting, finance and security analysis obtained through study. However, expertise develops through consistent, objective application of the knowledge, or what researchers call “deliberate practice.” Moreover, it requires practice on the things you don’t do well. Research shows that it is only by working at what you can’t do that you turn into the expert you want to become. Experts are made, not born.
Related: How the World’s Wealthiest and Most Successful Entrepreneurs Use Their Free Time
Because the future is unknown, all aspects of human existence bear risk. Successful investors must understand the types of risks inherent in action and minimize the likelihood of occurring (frequency) and the loss associated with an occurrence (magnitude). The investment philosophy of George Soros, one of the most successful investors of all time, focuses on potential investment losses. In his words, “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”
Investors can manage their investments to reduce potential losses by:
Knowing their risk tolerance. People vary in their comfort when they assume a risk. A high-risk investment is likely to be volatile with price changes that ignite extreme investor emotions. The rule of thumb is that any investment that causes the investor to lose sleep is an investment to avoid.
Ensuring potential return consistently exceeds possible loss. Consider the flipping of a coin where the outcome is 50/50 heads or tails. Investing in a coin flip to gain only as much as you could lose is a gamble, not an investment. On the other hand, investing with a 10% chance of a 100 times payoff could be worthwhile depending on the amount invested.
Exercising investment risk reduction tactics. A recommended practice is avoiding or reducing an assumed risk by diversification or similar strategies.
The road to riches is often long, filled with potholes and misdirection. Many begin the journey and discover that the exclusive pursuit of wealth is too demanding and that the tradeoffs between the present and the future are too great. In the words of the author, artist and poet Julia Cameron, “What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.”
Related: 4 Steps for Living Abundantly, Attracting Wealth and Better Business