3 stocks to watch in the next week: Amazon, Alphabet, Apple

All eyes will be on some of the largest global technology companies, each of which will report revenue in the coming week. These reports could make or break the market struggling to find a direction amid accelerating COVID-19 cases worldwide and escalating tensions between the U.S. and China.

For the second quarter, earnings for businesses are expected to decline by 40.3%, based on previously reported operating results and estimates, according to Refinifiv & # 39; s I / B / E / S. Technology gains are expected to be one of have the smallest profit declines, with an average of only 4.4%.

De, which had climbed to record highs this summer, ended lower for a second week, declined 0.9%, and ended trading at 10,363 on Friday. However, the technically heavy index has still risen by 15.5% so far. The S&P 500 ended the week with 0.3%, the first negative week in four. The S&P fell by half a percent this year.

In a week of profit announcements, these three names may be the most important for investors to follow:

1. Amazon

Online retailer Amazon (NASDAQ 🙂 will is expected to report Q2 2020 earnings after the market closed on Thursday, July 30.

The consensus agrees that the world's second most valuable company by market capitalization will once again crush expectations based on strong earnings momentum. Sales are likely to increase 28% to $ 81.09 billion from a year ago, generating earnings per share of $ 1.38.

This sentiment is strongly reflected in the company's stock price, which has risen 62% this year, thanks to the shift to online shopping during the COVID-19 pandemic. On Friday the stock closed at $ 3,008.91.

Any weakness of a stock in a negative surprise should provide an ideal buying opportunity. Amazon remains a great company. The company is aggressively spending on new growth areas, such as cloud computing. The digital advertising company, another high-margin company, is expanding by a triple figure.

2. Alphabet

Alphabet (NASDAQ :), Google's parent company, also reported second-quarter earnings on Thursday after the market closed. On average, expectations are for earnings per share of $ 8.04 on revenues of $ 37.3 billion.

Shares of Google underperformed this year, due to concerns that the recession caused by the corona virus will compel companies to cut digital ad spending, damaging this internet content and information.

On Friday, the stock closed at $ 1,508.21, up 13% for the year, after rising more than 30% in 2019.

The world's largest internet company has been trying to deviate from search ads for years by investing heavily in cloud services, digital video, consumer hardware, and riskier long-term bets such as self-driving cars.

In April, it showed progress in several of these areas, even though Google's leading advertising company suffered virus savings in marketing spend in March.

3. Apple

Apple (NASDAQ :), the maker of both popular iPhones and computers and smart wearables, is yet another technology giant released Thursday after closing the market reports revenue.

Analysts expect the company to report earnings per share of $ 2.02 in the third quarter of 2020, a profit on revenues of $ 51.77 billion.

The outbreak of and response to COVID-19 has posed several challenges to Apple, including disruption to its China-based manufacturing supply chain and store closures in many parts of the world. But Apple's stocks have defied these challenges, rising 26% and 60% from the March low this year. Shares fell 0.25% on Friday, closing at $ 370.46.

The company's huge innovation ecosystem and huge wealth of money are some of the hopes for the future of the Cupertino, the California-based tech behemoth. Apple currently has about $ 207 billion in cash on hand, with about $ 108 billion in both short and long-term debt.

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