In the communications services sector, Match (MTCH) is a notable third-quarter investment winner. The stock gained 28.97%. Investors benefited from Starboard Value taking an equity stake in the firm. Additionally, Elliott also invested in the struggling online dating firm.
Match is profitable, has positive free cash flow generation, and is an established brand. It is a cheap stock after it fell, compared to the Nasdaq rising by 19.18% YTD. Expect MTCH stock to continue to rise in Q4.
In the cruise ship market, Carnival (CCL) posted revenue rising by 15.3% Y/Y to $7.9 billion. Adjusted EBITDA jumped by 25% Y/Y. For the year, the firm expects EBITDA of around $6.0 billion (+40%). Despite dipping when it beats expectations, investors should not be discouraged. Consumers are happy to book Carnival and Princess cruises. This bullish trend will lift its revenue through beyond 2025.
Watch PepsiCo (PEP). The firm will post third-quarter earnings on October 8, 2024, before markets open. Expect the firm to report FY 2024 revenue growth of 1.0%. This increases to around 3% in FY 2025. The firm will announce proactive actions like a business restructuring, which cuts costs. Should it announce a portfolio review, the firm will give markets insight into how it will grow its restaurants (KFC and Pizza Hut) and drinks (Tropicana).
