CPG Reddit Mentions | ChartExchange

Here are analyst commentary for those interested:
* **B Riley Securities** analyst Naved Khan
* Sees virtually no sequential slowdown in growth, points to O/L driving +1100bps of EBITDA margin expansion, and expects that monetization gains continue on improved targeting/attribution/automation, advertiser growth, and Max campaigns
* Attributes monetization upside to impressions/pricing with broad strength across full funnel and performance ads, notes strength from most top verticals (retail, CPG, tech, media/entertainment), and credits lower strength to DPA
* Views Max Campaign as a positive for advertising demand given increased ROI, with initial results showing a 17% improvement in cost for advertisers and a 25% increase in conversions
* Calls DPA/shopping ads a sizable growth opportunity, notes ML signals/optimization driving 90%+ y/y boost to DPA advertiser ROAS in Q1, with 2x platform-wide conversions at lower CPAs, and 3x conversion-driven lower-funnel revenue
* Expects that DAUq growth/engagement benefits from feed personalization initiatives, a closed gap between iOS and Android experiences, simplified onboarding, and marketing improvements
* Believes expanding shopping/ad offerings is a positive for adoption/monetization, given \~40% of content is commercial
* Thinks that international growth should outpace US, and notes it is under-monetized
* Target remains $250, based on DCF; Maintains buy
* **RBC Capital Markets** analyst Brad Erickson
* Calls Q1 strong when excluding the favorite KIP (logged in DAUs), points to outstanding revenue/margin growth, and doesn't see any reason why leverage wouldn't continue
* Thinks enterprise likely saw the outsized benefit, but notes the SMB momentum highlighted by the Co, with Max adoption driving CPA/conversions, calls encouraging
* Emphasizes the Co seeing GOOGL's feed-like surfaces as a benefit, with a possible traffic tailwind, calls the most intriguing thing the firm has heard, and argues would warrant a re-rating
* Highlights logged in DAUs for US/Int'l both missing, US deceleration to 1% vs 5% along with logged out DAUs, and argues it reinforces the bear case that AIO/LLMs will continue to limit the Co's addressable shareholder base
* Target remains $250, based on \~26x (\~29x prior) 27 EBITDA; Maintains sector perform
* **Truist** analyst Youssef Squali - raises target
* Remains upbeat on the Co given the Q1 beat and Q2 guidance, attributes results to broad-based strength in ad demand across verticals/goes/channels, fueled by ARPU
* Encouraged ARPU acceleration, and attributes durable monetization acceleration to lower-funnel ads improvements/investments, stable macro, and solid advertiser onboarding/retention
* Thinks healthy user growth suggests no material impacts from GOOGL's algo changes this year, with sustained gen-AI traffic referrals
* Views the \~100M DAU goal as ambitious on the surface, but thinks \~500M WAUs provides an opportunity for ahead-of-schedule growth on improved search features and onboarding/UX improvements
* Calls SHOP integration a notable stepping stone to scaling DPA ads, thinks should help enable frictionless onboarding going forward
* Argues that while the Co is the fastest growing/most profitable within Digital Media, DAU growth needs to accelerate for it to remain over time
* Target raised to $265 from $260, based on 7yr DCF; Maintains buy
* **DA Davidson** analyst Wyatt Swanson
* Argues the revenue beat should offset softer user growth metrics, with less muted upside in DAUs vs the prior 3 quarters
* Notes US DAUs missing, but points to strength in US/int'l WAUq and calls an obvious opportunity to convert to daily
* Highlights lower-funnel strength (+TD y/y), views performance-oriented revenue (>60% total ad) as well balanced, and notes the Co saw strength across most of the top verticals
* Moves DAU estimates a touch lower, but EBITDA higher on O/L, and sees an opportunity for a MT DAU raise as the Co improves user experiences
* Target remains $200, implies 27x 2026 EBITDA; Maintains buy