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Tesla and Big Tech are about to revise the busiest week of earnings season


The busiest week of earnings season is about to begin, with companies Tesla and Big Tech expected to dominate the headlines.

The six largest companies in the S&P 500 index
SPX,
+ 1.09%

will report earnings next week, as about a third of the index discloses first quarter figures. The tech giants’ strong performances have helped offset the weaker performance of many other areas previously in the COVID-19 pandemic, and investors will understand whether that dynamics can continue. when the world reopened or not.

One of the newest members of the S&P 500, Tesla Inc.
TSLA,
+ 1.35%
,
lead the week on Monday afternoon. The company reported delivery in the first quarter exceeding expectations, so investors will be looking for clues about Tesla’s earnings call about how the rest of the year might play out. Come on. Consensus forecast currently requires around 800,000 deliveries during 2021.

Earning preview: Tesla reports earnings amid new concerns about Autopilot

Microsoft Corporation
MSFT,
+ 1.55%

and Alphabet Inc.
GOOG,
+ 2.09%

GOOGL,
+ 2.10%

Tuesday afternoon track with two portraits of the cloud landscape.

Microsoft’s Azure cloud business “could slow modestly” in the third quarter results, J. Derrick Wood of Cowen & Co. wrote in a customer note, but he hopes to accelerate overall growth by improving demand for products like Office suites amid economic recovery as well as PC shipments. The big boost can help Windows business.

Jefferies analyst Brent Thill wrote: Alphabet appears to be demonstrating “sustainable power in the cloud,” who hopes the business division will benefit from “pent-up demand” as this year continues. profanity. He also predicts the acceleration of the ad momentum.

Alphabet earnings preview: Google’s advertising revenue is expected to be bright despite the dark antitrust clouds

Another company in the advertising scene will come from Facebook Inc.
FB,
+ 1.55%

on Wednesday afternoon, after Snap Inc.’s
SNAP,
+ 7.45%

Report shows healthy ad spending. The biggest growth drivers for Facebook could be the increase in Instagram Stories revenue and the growth in impressions on the core Facebook and Instagram mobile feeds, Cowen’s John Blackledge writes.

Earning preview: Facebook’s digital advertising revenue continues to grow despite the antitrust threat

Apple Inc.
AAPL,
+ 1.80%

was a strong beneficiary of the pandemic as its iPad and Mac portfolios saw strong growth from the explosion of remote work, and Morgan Stanley’s Katy Huberty argues that strength in That category may have really accelerated in the third quarter. Her forecasts showed that the Mac business grew 53% and the iPad business grew 52% when Apple released the results on Wednesday afternoon.

Earning preview: Apple’s business is booming, and investors are about to find out how that cash is coming to them.

The end of the week on Thursday afternoon is Amazon.com Inc.
AMZN,
+ 0.96%

Bernstein analyst Mark Shmulik wrote: It’s another pandemic winner amid the online shopping boom and must admit that “there is no easy catalyst in sight” for Amazon today. However, he points out “positive business dynamics and compelling growth everywhere we see it”.

Thinking about the first quarter, he hopes the company will benefit from the continued strength of e-commerce and the emergence of stimulus tests. Ultimately, Shmulik hopes to “accelerate workload migration” for Amazon’s cloud business as workers return to office life, but he admits that could take several quarters to complete. .

Do not miss: The technology’s COVID-19 explosion won’t last forever, but it won’t be over

Tesla and the tech giants are among the 177 members of the S&P 500 to be reported next week. The block medium also includes the 10 Dow Jones Industrial Average
DJIA,
+ 0.67%

components, one-third of the components of the blue-chip index.

According to JPMorgan analyst Mislav Matejka, the company’s earnings overall have exceeded estimates, with a 73% defeat rate for the S&P 500. Nearly a quarter of the index has given results and analysts surveyed by FactSet expects that total profits rose 33.7% in the first quarter. This is up from the 15.7% forecasted at the end of December.

Here are some other highlights of the coming week.

Big week for the Dow

Among the 10 Dow components on the chart is Boeing Co.
FATHER,
+ 1.73%

and Chevron Corp.
CVX,
+ 0.59%
,
The two companies are looking to recover from the recent bleak earnings results.

Analysts tracked by FactSet expect Chevron earnings to drop 31% in the third quarter, though that decline is not as steep as Chevron had announced in the previous few quarters. Mizuho analyst Daniel Boyd predicts that the most recent period is a “challenging” quarter for Chevron as winter storms “have a negative impact on Permian production, chemicals and refineries. Pasadena on the Gulf Coast ”. The company reported Friday morning.

Even more technology

While the five biggest tech companies reported this week, there are plenty of other big tech companies lining up to report.

Advanced Micro Devices Inc.
AMD,
+ 4.68%

is set to release results on Tuesday afternoon after rival Intel Corp.
INTC,
-5.32%

reduced data center sales, which some analysts attributed to competition from AMD. Even ahead of Intel earnings, Cowen’s Matthew Ramsay wrote that “AMD earnings (and product roadmap) have become much less volatile than Intel and we expect more this quarter. ”

Facebook won’t be the only social media name to get noticed, as Pinterest Inc.
PINS,
+ 4.17%

Tuesday afternoon reports and Twitter Inc.
TWTR,
+ 4.21%

Thursday afternoon reports.

According to Wedbush analyst Ygal Arounian, several factors in Snap’s recent report work well for Pinterest, according to Wedbush analyst Ygal Arounian, who cited strength in categories like retail. E-commerce and packaged goods are also important categories for Pinterest. While the reopening appears to be helping Snap’s trend toward user engagement, it could hurt Pinterest, he warns.

Food for thought

A number of food related items will be on the menu next week. Mondelez International Inc.
MDLZ,
-0.07%

and Starbucks Corp.
SBUX,
+ 1.41%

reported Tuesday, while Domino’s Pizza Inc.
DPZ,
-0.26%

and McDonald’s Corp.
MCD,
+ 0.70%

post results Thursday.

A trend for McDonald’s to look out for is early demand for the company’s new chicken burgers, which hit the market in February. Third-party data indicated that the company “saw a growing gap from it [quick-service] Jefferies analyst Andy Barish wrote: ”

Pay it forward

Some of the readings on consumer spending will come from Visa Inc.
V,
+ 1.07%

(Tuesday afternoon), PayPal Holdings Inc.
PYPL,
+ 1.43%

(Wednesday Afternoon) and Mastercard Inc.
GHOST,
+ 0.97%

(Thursday morning). Some improvements in travel trends could help Visa and Mastercard, while all three could benefit from sustained traction in e-commerce.

As for PayPal, investors will be looking for updates on the company’s efforts to introduce cryptocurrencies into its ecosystem. PayPal began allowing US users to buy, sell, and hold bitcoin and other cryptocurrencies in their PayPal wallets late last year, which it says has driven higher levels of engagement with the app. mine. More recently, the company started to allow customers buy items online using those cryptocurrenciesand management can share more about early trends there.

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