The market could lose some momentum in the coming week as investors look for new reasons to buy stocks that have so far performed surprisingly well during the global health crisis.
During the month of July, it posted a profit of 5.5%, while it rose by 6.8%, powered by megapap technology companies that exceeded expectations in their latest earnings reports, all of which were released late last week.
With much of the major revenues out of the way, analysts expect that the focus will now shift to politics as Congress struggles to find a middle ground on a new budget spending package and fate to determine the just-expired unemployment of $ 600 a week. supplement that ended on July 31.
With investors' focus on these macro developments, here are three stocks to keep on your radar for the next week:
1. Disney
The Walt Disney Company (NYSE 🙂 reports third quarter earnings for fiscal 2020 after the closing bell on Tuesday, August 4. Analysts expect sales of $ 12.44 billion and a loss of $ 0.61 per share.
The mouse house is in the midst of a nasty recession. The core business, which thrives on shared group experiences, suffers from the worldwide spread of COVID-19 that forced the closure of its theme parks, resorts, cinemas and cruises worldwide.
Hurt by this unprecedented challenge, Disney reported a $ 1.4 billion deficit in its operating income, including a $ 1 billion hit from only closed theme parks and the rest of other business units. A bright spot in the upcoming earnings report, however, could be the number of subscribers to the recently launched Disney + streaming service, which is benefiting from the home environment.
The entertainment giant's stock has fallen 19% this year and closed at $ 116.94 on Friday. The stock is gradually recovering from the dip in March, fueled by hopes of Disney's resurgence of activity once the pandemic is subdued.
2. Uber Technologies
Uber Technologies (NYSE :), & # 39; the world's largest taxi company, is expected to report second quarter earnings on Thursday 6 report in August after market close. According to analyst consensus forecast, Uber will announce a loss of $ 0.8 per share on revenues of $ 2.09 billion.
Uber shares have more than doubled since their March lows and closed on Friday at $ 30.26, aided by the diversified business model and cost-cutting efforts.
In May, Uber announced a series of measures to cut costs, including ending delivery operations in more than half a dozen countries. It also reduced about a third of the workforce at Careem, the unit in the Middle East.
Even as this restructuring is accelerating, Uber & # 39; s diversification in the food delivery industry is thriving as more and more people order online when restaurants are closed. Uber Eats gross bookings were up 52% ??year-over-year to $ 4.68 billion.
During this week's report, investors will look for signs that the worst may be over for this Francisco-based company and that customers are booking more rides as the economies open up.
3. Microsoft
After President Donald Trump said he is considering taking steps to ban TikTok from the US, Microsoft's (NASDAQ 🙂 efforts to to acquire the US business of video sharing app from Chinese company ByteDance LTD in focus next week. Negotiations were halted after the president's announcement as companies try to clarify what Washington will really be.
The situation is likely to affect the shares of the tech giant based in Redmond, WA. The stock has gained 30% this year; it closed at $ 205.01 on Friday.
According to the Wall Street Journal, "for Microsoft Corp. Chief Executive Officer Satya Nadella [said] would be the most daring purchase of TikTok in a series of big deals and could reform a technology giant that has been flourishing lately by focusing on business customers. "
ByteDance launched TikTok in 2017. The app gained popularity during the coronavirus pandemic, with 2 billion downloads in April, according to Sensor Tower. ByteDance investors seeking to acquire TikTok valued it at $ 50 billion, Reuters reported earlier this week.
