Due to tensions between the US and China, investors expect another volatile week for the equity markets, where economic recovery has been the focus so far.
Investor nervousness was seen during Friday's session when President Donald Trump announced that the US would withdraw special trade treatment for Hong Kong, an autonomous territory, in response to a controversial security law that China is implementing to tone down on political protests.
While the tension between the US and China and the reopening of the economy will be the main concerns in the coming week, there are also some important earnings expenses that should not be ignored. These three tech stocks may surprise markets when they report quarterly results:
1. Zoom Video
Zoom Video Communications (NASDAQ 🙂 will report first quarter earnings report the fiscal year 2021 after the market closed on Tuesday 2 June. Analysts expect earnings of $ 0.13 on expected revenues of $ 276 million.
One of the clear winners in the coronavirus and post-pandemic economy, Zoom is now used by millions of workers and students who have flocked to digital communications providers after countries were forced to lock up citizens and businesses and schools. were closed.
In March, Zoom revealed that the number of daily users for its video conferencing platform has exploded – from a previous peak of 10 million to over 200 million today. For this reason, Zoom's shares have outperformed other names in the tech sector during this economic crisis.
Trading at $ 179.48 at the end of Friday, Zoom & # 39; s share was up 164% in 2020, just a year after its IPO, when it was at $ 36.
Amid increasing usage, the San Jose, California-based company is also trying to ensure users that the platform is safe after a number of security breaches during the pandemic storm raised the issue of malicious hacking on its platform.
2. Slack
Slack Technologies (NYSE 🙂 will report its fiscal results for 2021, Q1 after closing the market on Thursday, June 4. Analysts are forecasting – $ 0.04 earnings per share on revenues of $ 254 million.
Slack, whose platform makes it easy for remote workers to communicate and coordinate work documents, is another beneficiary of the virus-driven escalation in people who work from home.
The stock, which closed at $ 35.05 on Friday, has risen 56% this year, even after a sharp decline in March. Still, some analysts have doubts about the long-term outlook.
It faces strong competition from Microsoft's (NASDAQ 🙂 competing Teams product.
"No investor doubts Slack's cult-like product portfolio and impressive growth trajectory," said Wedbush analyst Daniel Ives in a recent report. "The problem boils down to the long-term growth profile" with Microsoft CEO Satya Nadella "laser-focused on his teams and the Office 365 opportunity."
3. Broadcom
Broadcom (NASDAQ 🙂 is the last major chip maker to release revenue this season. The company will publish its Q2 2020 fiscal profit after the market closes on Thursday. Analysts expect earnings of $ 5.14 per share with expected revenues of $ 5.69 billion.
Broadcom shares have come back strongly after the March slump, hoping that the demand for chips will not decrease in the slowdown caused by viruses.
On Friday, the stock closed at $ 291.27, after rising about 3% for the day.
In the latest earnings report, investors are eager to know if the company's current strategy, led by CEO Hock Tan – to grow through acquisitions and buy software assets that are struggling – is paying off.
Last year, Broadcom acquired $ 10 billion of Symantec's (NASDAQ 🙂 enterprise security division, which produces software to keep hackers out of business systems. In 2018, the company completed a $ 19 billion acquisition of CA Technologies. After these deals, more than 80% of Broadcom's sales will now be derived from segments that are considered stable and sustainable, such as cloud, network, software and storage companies.
