The internet, as we are all well aware of now, has become virtually ubiquitous. What are now reasonably simple artificial intelligence devices and applications, like Siri, Alexa and Google Home, will one day surely be morphed and programmed to not only search and scan the internet for answers, but to provide critical and, most amazingly perhaps, logical thoughts and answers.
One of the current uses the internet provides consumers is product searches and queries. In a new research report, the always forward-looking analysts at Jefferies have started coverage of Google search queries and how they could relate to stocks in their coverage universe.
The Jefferies team noted this in the report while unveiling the new analysis:
We introduce a new periodical which aims to highlight brands and products trending on the Internet and drills down on a few things that could have real stock impact. Many new products and trends that ultimately impact company results are first apparent in search, web/app traffic and social media. This report surfaces some of the trends most relevant to the Jefferies’ universe and this particular edition delves deeper into how a few products may affect covered stocks.
Jefferies examined several high-interest products that were directly connected to companies the firm covers with equity research.
This product has exploded on the internet, as it is providing consumers with a more reasonable and less bulky electric toothbrush that provides sonic action. The product provides numerous quality enhancements to the electric toothbrush, and these positives were cited on the company’s website:
1) The perfect brush
2) Bristles with just the right amount of sonic vibrations and guiding pulses to help simplify better brushing. No needless modes. Just what the dentist ordered for a wholesome two minute clean.
3) ADA Seal of Acceptance
4) Sensitive, silent sonic vibrations
5) 30-second quadrant timer
6) No more bulky brush or wired charger to weigh down your day. quip’s slim design and travel-ready holder that suctions to bathroom surfaces helps make your twice daily routine easy and enjoyable, wherever you love to brush.
7) Fresh brush head refills delivered every 3 months before they become unhygienic and incapable of cleaning for just $5 with free international shipping. You can get our anti cavity mint toothpaste in your refills, too.
This product has been going crazy with consumers, and the Jefferies team points out how it could affect companies they cover by saying this:
Analyst Kevin Grundy is much less certain that Quip’s entry into Target will catapult the brand in the same way that it did for Harry’s, particularly given less pricing disparity vs. existing competitors and somewhat less convincing points of differentiation, based on his research. As a result, Kevin sees the risk from Quip as manageable for the industry incumbents in his coverage, Procter & Gamble (NYSE: PG) (Hold), Colgate Palmolive Company (NYSE: CL) (Hold), and Church & Dwight Co, Inc. (NYSE: CD) (Buy) with their respective oral care portfolios more levered to manual toothbrushes, toothpaste, and other accessories, as opposed to electric toothbrushes.