In a week full of several mega-results reports, there is one fear that is likely to distract investors: the Chinese corona virus that has killed at least 56 people and has spread to other countries, including the US, Australia and France.
Under pressure from concerns from investors, Friday ended with 170 points. The and also showed weakness, stopping the 2020 rally that pushed the indexes to new highs almost every other day.
Yet in this environment of fear, there are many important income releases that investors cannot afford to ignore. Here are three technological giants whose reports could help clarify whether the latest gains in their stock prices are justified:
1. Apple
Apple (NASDAQ :), the maker of popular iPhones, as well as computers and smart wearables, will report the results of the first quarter of 2020 on Tuesday, January 28 after the close of the market.
AAPL Weekly 2017-2020
The stock has recently shed tears, the value has doubled in the past year when demand for its new iPhones returned and the company made more money with its other companies. For the first quarter, analysts would like to know how the company did during the holidays and whether it believes this period of unusual power will continue.
The shift in sentiment for Apple came after a short-lived bearish spell in early 2019, when investors became convinced that the Cupertino, California-based manufacturer's strategy to generate more revenue from its services division is bearing fruit. The increasing contribution of services such as iCloud storage and Apple Music is causing the company to encourage analysts to allocate a higher multiple to its inventory. In recent weeks, various analysts have also increased their profit forecasts, citing strong feedback from AAPL suppliers.
For the company's fiscal results in the first quarter of 2020, analysts expect $ 5.54 per share on sales of $ 88.38 billion. Apple stock reached a record high of $ 323.33 on Friday, but closed marginally lower this day.
2. Facebook
Social media giant Facebook (NASDAQ 🙂 will report the results of the fourth quarter of 2019 on Wednesday, January 29 after the market has closed. The company is expected to generate $ 28.9 billion in revenue and posted $ 2.52 profit per share.
FB Weekly 2017-2020
Facebook shares also reached a record high this month, recovering from the deep slump of 2018, in spite of regulatory probes, fines and general public distrust of the platform. The stock ended Friday's session at $ 217.94, a decrease of 0.8%.
This strong revival comes after a tumultuous 2018 when investor confidence in the company was heavily shaken by a series of high-profile setbacks, including data breaches, concerns about user privacy and political manipulation of the platform.
Although Facebook's problems are far from over, with CEO Mark Zuckerberg warning of a "difficult year", the company continues to show resilience in its revenues. For the, Facebook re portrayed that new users are still flocking to his apps, with 2.8 billion people who now use at least one of his services every month.
This week will be important for investors as the possibility of Zuckerberg disappearing later in the year could highlight the risks of the US presidential election and how the costs of stricter regulation affect business results.
3. Microsoft
Microsoft (NASDAQ :), one of the technical darlings of Wall Street, reports fiscal gains for the second quarter of 2020 after the market closed on Wednesday, January 29. The computer giant is likely to make a profit of $ 1.32 on sales of $ 35.7 billion.
MSFT Weekly 2017-2020
If the past gives some clues, the technological colossus should have a strong growth momentum, fueled by an increase in technological investments and the power of its major Office products.
Microsoft shares – which reached a record high of $ 168.19 Tuesday, but slightly lower than Friday, at $ 165.04 – have been a very successful bet for investors who believed in the growth strategy of CEO Satya Nadella who contributed to reinventing this legacy technology company.
That power was evident at the time that Microsoft reported that its sales and profits continued to grow, stimulated by the company's Azure cloud computing programs and Internet-based versions of Office.
Sales of its Azure cloud service segment increased by 59% in the last period, although growth slowed from 64% in the previous period and 73% in the previous quarter. Microsoft shares may give some profit this week if growth in this important segment slows down again.
