Estimize CEO Leigh Drogen joins Yahoo Finance Live to discuss its technology outlook for 2021 and which businesses will sustain the momentum they saw in 2020.
Video transcription
– We talk a lot about technology because it’s so important in our lives, so much so during this pandemic. But in the future, look at the technological prospects with Leigh Drogen, CEO of Estimize, joining us now. And the focus on 2021, Leigh– Will we rejoice next year or the companies that brought us to the point we are celebrating this year, or will there be a growth path if we get out of the pandemic?
LEIGH DRUG: Well, we’re looking at a few different groups there. The first group is the SaaS service companies we have relied so much on this year. Some work in the background. But if you think about the growth in Shopify and Twilio and these companies that drive all the internet products we use and see the physical products we bought this year, we do not see the growth in the businesses that are stepping back.
And if we look at the estimates on the Calculate platform, you know, three, four quarters, whether there’s going to be a big shift in the growth of those businesses or consumer spending that has a big impact on the businesses that those businesses serve liver, you would see that the estimate of growth would disappear. But we actually see that the estimates are growing significantly. Over the past two months, Shopify’s estimate has risen by 15% on the revenue side. We therefore continue to believe that we will see a lot of growth in these companies next year.
The other interesting set is the social media businesses. And this is where you will see a significant turnaround in the revenue growth of the platforms as everyone comes out of their homes with their vaccine this summer. You can spend less time on those platforms. And the obligations for the companies are going to be very difficult, because we all sat in our homes last spring to last summer. So, if we come to the conclusion here, the stocks may be having a hard time with the earnings reports not being as good as last year, respectively.
– And to get more details on what you’re talking about, with consumer behaviors returning to normal with hopefully tens of millions of Americans, you know that you’ll be vaccinated in the spring and summer, what do you think means for stocks like Uber, Zoom and DoorDash ?
LEIGH DRUG: Yes, these are also companies that could be difficult next year as consumer behavior normalizes. As for DoorDash, we have already seen the share of the IPO sold. And it’s again because the competitions are going to be very difficult if everyone is going to travel this summer, that we’re all going back to restaurants, so that’s not a name I would be very invested in.
Zoom is interesting, where you have more extraordinary growth in remote work. Now, I think what’s happening here is that some of the stocks are definitely much appreciated, as well as investors from traders who are going ahead, possibly people who are stepping back a bit from the platforms this summer.
I think the other reason for this might be a little weak over the last few months and going forward is because 2021 is going to be the year in which we are likely to see augmented reality take over as we stare at 2D screens. It’s really hard to stare at a 2D screen all day when you make call, after call, after call.
And remote work is only going to accelerate here, as companies realize it has not hurt them. In fact, for many companies, they will benefit physically. We’re going to get new products, and such products could interrupt something like Zoom.
– What’s going to happen to Twitter? Forgive me for going to the old school here, but we’re going to change the administration. We’re not going to shout at the president that much. Some people speculate that he may even kick off the platform. What is the future for the social media and Facebooks of the world?
LEIGH DRUG: You know, and that’s funny. The concept of regime change is very much brought out with Twitter. And year after year, it just doesn’t seem to be going in one direction or another. Now, Twitter has definitely, like other social media companies, benefited in a sense from the pandemic. But what investors are looking at on Twitter is that they can develop complementary and secondary, sort of, lines that people are interested in on the platform.
And it really revolves around, and the sentiment for the stock revolves a lot around specific events. Are there many people who pay attention to the Super Bowl? Do they comment on it? Because these things happen every year, investors want to see them constantly build momentum around these talks. And I do not see that the end of the pandemic will necessarily affect it.
And over time, Twitter has been able to broaden its thinking around the events. Clearly it was rocky. It was up and down for them. But overall, it has risen in the long run. So I do not see that the Trump administration is such a serious issue for Twitter.
– Good. Leigh Drogen is the CEO of Estimize. We appreciate you being here and wish you a happy, healthy and safe new year.