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Leigh Drogen, CEO of Estimize, joins Yahoo Finance Live to discuss its tech outlook in 2021 and the companies that will maintain the momentum they saw in 2020.
Video transcript
– We talk a lot about technology because it is so crucial to our lives, both during this pandemic. But for the future, let’s take a look at the tech outlook with Leigh Drogen, CEO of Estimize, joining us right now. And the focus on 2021, Leigh – The companies that got us to this point we’re celebrating this year, will we be cheering next year, or is there a growth trajectory coming out of the pandemic ?
LEIGH DRUGS: Well, we’re looking in a few different groups out there. The first group consists of SaaS service companies on which we have relied so much this year. And some of them are running in the background. But if you think about the growth of Shopify and Twilio and those companies that run all of the internet products we use and supply us with the physical products that we bought this year, we don’t see the growth of those companies taking a backslide.
And when we take a look at the estimates on the Estimize platform, you know, three, four quarters, if there was to be a big change in the growth of these companies or consumer spending that had a significant impact on the companies that these companies are experiencing. companies provide services, you would see the growth in estimates stagnate. But we’re actually seeing those estimates increase dramatically. Over the past two months, we’ve seen Shopify’s estimates increase by 15% on the revenue side. So we continue to believe that we will see strong growth next year in these companies.
Now the other interesting set are the social media companies. And this is where you might see a big comeback in the revenue growth of these platforms as everyone walks out of their homes this summer with the vaccine. You can see less time spent on these platforms. And the comps for these companies are going to be really tough because we were all basically sitting in our homes from last spring to last summer. And as we come to the turning point here, these stocks may struggle to manage earnings reports that are not as good respectively compared to last year.
– And to go into more detail on what you’re talking about there, with consumer behavior going back to pretty much normal with, hopefully, tens of millions of Americans, you know, getting vaccinated in the world. spring and summer, what do you think that means for stocks like Uber, Zoom, and DoorDash?
LEIGH DRUGS: Yes, these are also businesses that could struggle next year as consumer behavior normalizes. As for DoorDash, we’ve already seen the stock sell off during the IPO. And it’s again because the compositions are going to be really difficult because everyone is going back to travel this summer, that we are all going back to the restaurant, so it’s not a name that I would be heavily invested in here.
Zoom is interesting, where you are more in a super secular growth of remote working. Now I think what’s going on here is that a portion of stocks was definitely highly valued, as well as trader-investors, potentially leading people to take a step back from these platforms this summer.
I think the other reason that this may have, may be a bit low here over the past couple of months and going forward is because 2021 will be the year that we will probably see augmented reality start. take over from 2D screens. It’s really hard to watch a 2D screen all day long when you’re making a call, after a call, after a call.
And remote working will only speed up here, as businesses will find it hasn’t hurt them. In fact, for many businesses, they will benefit physically. We’re going to get new products, and those products can disrupt something like Zoom.
– What will happen to Twitter? Forgive me for being old school here, but we’re going to have a change of administration. We’re not going to have the president, maybe, you know, screaming that much. He could even be kicked off the platform, some people say. So what’s the future of these social media and the world’s Facebooks as well?
LEIGH DRUGS: You know, and it’s funny. The concept of regime change is often brought up with Twitter. And year after year, it doesn’t seem to matter one way or the other. Now Twitter has certainly benefited, like other social media companies, from the pandemic, in a way. But what investors are really looking for on Twitter is that they can develop ancillary and secondary lines, of sorts, of what interests people on the platform.
And these really revolve around, and the feeling for the action revolves a lot around specific events. Are there a ton of people paying attention to the Super Bowl? Do they comment on it? Because these things happen every year, so investors want to see that they’re constantly building momentum around these conversations. And I don’t see that the end of the pandemic will necessarily have an impact on that.
And Twitter has been able to increase its wit around these events over time. Obviously, it was difficult. It was ups and downs for them. But overall, over the long term, it has increased. So I don’t see the Trump administration going away as such a serious problem for Twitter.
– Okay. Leigh Drogen is the CEO of Estimize. We appreciate your presence here and wish a happy, healthy and safe New Year.
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