Motley Fool Money 08.02.2013

While the July jobs report showed an improvement with 162,000 added and a falling unemployment rate of 7.0.4%, the quality of jobs created remains a concern. The wages, hours worked, and labor force participation rate all saw declines, indicating that many of these jobs may not be sufficient for people to meet their financial needs. This uncertainty surrounding employment could hinder businesses from making significant hiring decisions, leading to a sluggish job market. Despite the mixed news for Main Street and Wall Street, the market did not react positively to the report. Listen to the Think Fast, Talk Smart podcast for valuable communication skills to help excel in your personal and professional life.

The employment situation in the US continues to show signs of improvement, but the quality of jobs being created is a concern. The unemployment rate is getting closer to the Federal Reserve's target of 6.5%, but the jobs being added are mostly in low-wage industries like retail, restaurants, and administrative work. The market's reaction to this could be contributing to the ongoing stimulus efforts and the continued uncertainty in the stock market. Another key takeaway is the strong performance of the higher-end grocery segment, with companies like Whole Foods and Sprouts Farmers Market seeing significant growth. Competition in this space is increasing, but these companies are also competing on brand and lifestyle, which could help them maintain some pricing power. Additionally, companies like SodaStream that offer devices for making products at home, such as soda or coffee, continue to perform well despite skepticism about the longevity of these trends. These companies have proven their ability to carve out a space on the kitchen counter and maintain consumer interest.

SodaStream and Buffalo Wild Wings both reported impressive earnings and sales growth, which led to significant stock price increases. For SodaStream, the numbers were 22% for unit sales of carbonators, 31% for unit sales of soda flares, and 18% for unit sales of the actual machines. With 46% of tradable shares being short before the results, the pop was even more pronounced. Buffalo Wild Wings reported earnings growth of 41% off revenue growth of 28%, with Sally Smith leading the charge operationally. They're only halfway to their goal of 1700 stores, and their new pricing scheme, which involves selling wings by the pound instead of by the quantity, has been successful. For SodaStream, there's a possibility of being acquired, with PepsiCo being a rumored suitor. If you could ask Sally Smith one question about Buffalo Wild Wings' future, what would it be? I'd be curious to know if she sees their 1700 store target as an optimistic middle ground or if it's overly ambitious. As the companies get closer to that store base, the stock prices might start to level off.

While some companies may be facing challenges in the short term, such as Coach's management shakeups and lower-than-expected revenue, long-term investors may see opportunities in these situations. The market is forward-looking, and the signs of success for these companies will eventually be reflected in their stock prices. For instance, MercadoLibre, the eBay of Latin America, is experiencing significant growth with registered users, items sold, and gross merchandise volume all increasing substantially. These numbers indicate underlying strength in MercadoLibre's business. Additionally, the Motley Fool team discussed the potential opportunity in Coach, despite its current challenges, due to its iconic brand and the fact that transitions can often create opportunities for growth.

Both MercadoLibre and LinkedIn had impressive quarterly results with significant growth in membership bases, engagement, and corporate clients. MercadoLibre's stock valuation may seem high, but its continued investment in growth and cash flow from operations suggest a promising future. LinkedIn, with its astronomical PE ratio, is often misunderstood as just a job force, but its cash flow from operations shows the investments in the business are paying off. Both companies have shown robust growth and have the potential for further gains. Despite not fully understanding the complexities of LinkedIn's business, Steve, a shareholder, is happy with his investment returns. Similarly, the speaker is impressed with MercadoLibre's growth and owns shares, despite its high valuation.

LinkedIn's value to corporate clients comes from the reliable data they provide, leading to a strong business model and pricing power. In the stock market, there are intriguing opportunities in education with Bridgepoint Education (BPI) and Tesla Motors (TSLA). Bridgepoint Education is focusing on quality education and may see a shift towards online learning in the future. Tesla Motors reports next week, and investors will be looking for strong vehicle sales and profitability numbers to justify the stock's move. Additionally, Jason mentioned Coach (COH) as an opportunity for long-term growth despite leadership changes and slowing sales. These stocks in education and electric cars show potential for investors.

Twitter is more than just a platform for trivial content and celebrity updates. As Carl Quintanilla explores in the new CNBC original prime time special "Twitter Revolution," the company behind the social media giant is changing the way we consume news, engage with each other, and even solve crimes. From the Boston Marathon bombing to the role of law enforcement and average citizens, Twitter has become an essential tool in our modern narrative. It's not just a place for frivolous content, but a powerful platform for information and communication. The special premieres August 7th at 9 PM EST and promises to provide a deep dive into the company's business model, long term plan, and impact on our lives around the world.

Twitter, under the leadership of CEO Dick Costello, is navigating the challenges of hypergrowth and managing the human elements of the platform, all while facing questions about going public. Despite the media frenzy and potential risks, Twitter's team, many of whom are ex-Google employees, want to maintain control over the company's growth and operations. The goal is to expand Twitter's reach to every person on the planet, with only about 16% of US adults currently using the platform. The question remains whether Twitter can continue to grow and avoid the fate of fading platforms like Myspace. The company's hesitance to discuss IPO plans adds to the uncertainty, but one thing is clear: Twitter's profound impact on human moments, both bright and dark, makes its future a significant question for the next few years.

Twitter faces challenges in terms of longevity and monetization, as they compete with larger platforms like Instagram and Facebook. The latter's rocky IPO experience may have influenced Twitter's decision to remain a private company. While Twitter has competitive edges like the hashtag and innovative features, making significant money remains their biggest hurdle. During earnings season, underwhelming results have been the norm, with the market showing a greater reward for companies that beat expectations. The trend towards equities as the best investment option in a low-interest-rate environment continues, with stocks seen as the best house in a bad neighborhood. Facebook's stock regaining the IPO price doesn't necessarily mean they've turned a significant corner, but rather that they may have raised expectations too high.

Mark Zuckerberg and Facebook's top management team are known for their exceptional foresight but let their overconfidence get the best of them during their IPO. However, with the stock taking a big round trip and expectations reset, we can expect to see more of Zuckerberg and better management of investor expectations moving forward. Additionally, Facebook's mobile ad revenue, which was virtually non-existent just a few years ago, is now a significant source of revenue, and their targeted advertising capabilities are among the best in the industry. As for consumer technology companies under pressure to deliver a hit product in the second half of 2013, it's no contest - it's Apple. While the wait for a new revolutionary product may be longer than usual, historically, Apple has not released a game-changer every year. The anticipation for a new product in October is high, and if it doesn't materialize, it could lead to a rough Q4 for the tech giant. Finally, congratulations to Molly Fullamony and her team for their Emmy nomination for the CNBC original "Costco Craze," and a shout-out to Jim Sinegal for his role in the production. In the world of Twitter, Katy Perry has surpassed Lady Gaga as the most followed woman, but this Gaga fan is still rooting for Mother Monster.

Despite the perceived decline of certain media formats like vinyl records and television shows, there continues to be strong demand and value in them. Vinyl sales are projected to increase by 30% in 2013, and collectors like the speaker are both long-term and short-term buyers. Similarly, the hit TV show "Breaking Bad" has gained a massive following, including notable figures like Warren Buffett and Keith Richards, and its return for a final season is highly anticipated. These examples demonstrate that there is still a significant market for physical media and culturally relevant content, and that investors and consumers alike can benefit from buying, selling, or holding onto these assets. Additionally, the speaker encouraged listeners to follow the show on Twitter and provided information about an upcoming CNBC original, "Twitter Revolution." Overall, the message was one of excitement and anticipation for the future of these media formats and the potential opportunities they present.