Cathie Wood Sets Out for Discount Shopping: Her Recent Purchases of 3 Stocks
Exact Sciences and Pinterest: Mixed Fortunes in Q2 Results
In the realm of corporate finance, two tech giants have recently experienced contrasting fortunes. On one hand, Exact Sciences, a healthcare company specialising in cancer diagnostics, has seen a two-day dip in its stock price by 13%, following the unveiling of its Q2 financial results that did not meet investor expectations. On the other hand, Pinterest, the social media platform known for its visual content, has reported a stronger-than-expected revenue growth, indicating effective monetization of its audience, particularly overseas.
Exact Sciences' Q2 results showed a beat on both ends of the income statement, with the company boosting its full-year guidance by more than the degree of the beat in the second quarter. However, this was not enough to appease investors, leading to a drop in the company's stock price.
In a move to bolster its position in the colorectal cancer screening market, Exact Sciences announced a significant deal worth up to $775 million. The company will pay $75 million up front and up to $700 million more over time for the exclusive U.S. licensing rights to rival Freenome's colorectal cancer screening tests. This deal suggests that Exact Sciences may believe Freenome is doing a better job in the market.
Meanwhile, Pinterest has been experiencing steady growth. The company's global monthly active users have increased by 11% over the past year to a record 578 million. This growth has translated into a 17% rise in revenue, surpassing market expectations and reaching $998 million in the recent quarter.
Despite concerns about the ad market due to the current trade war, Pinterest's stock is still trading 21% higher in 2021. However, it's worth noting that adjusted earnings for Pinterest grew nearly twice as fast as expected, but fell short of analyst estimates.
In terms of transparency, there has been some ambiguity regarding Cathie Wood's stock purchases. On July 31, 2021, there is no information available about which institution Cathie Wood bought stocks from, nor the specific stocks she purchased on that date.
In conclusion, while Exact Sciences is grappling with investor concerns following its Q2 results, Pinterest continues to thrive, demonstrating effective monetization of its growing audience, particularly overseas. The future remains uncertain for both companies, but they continue to make strategic moves to secure their positions in their respective markets.
