After last week's peaceful inauguration of the new US president, Joseph Biden, politics is now fading into the background. For the markets, the coming week will be dominated by the operating results and financial health of US listed companies amid the still raging COVID-19 pandemic.
With more than 450 companies reporting revenues in the coming week, the main focus will be on a diverse group of blue chip companies, including Boeing (NYSE :), Caterpillar (NYSE :), Starbucks (NASDAQ 🙂 and some of the world's largest technology companies.
Our focus will be on the following three tech giants whose revenues for the September-December period could help clarify whether their latest share gains are justified:
1. Apple
Apple (NASDAQ :), the maker of iPhones as well as computers and smart wearables, will publish its results for the first quarter of fiscal 2021 on Wednesday, January 27, after the market closes.
Analysts expect the company to average $ 1.4 earnings per share on revenues of $ 102.31 billion. The quarter, which includes the year-end sales period, is important to continue to accelerate the company's growth momentum.
Over the past 12 months, Apple's stock has rallied 75%, much faster than the gains of the tech-heavy Index, as demand for the latest iPhone 12 models remains strong. AAPL closed at $ 139.07 on Friday and traded near a record high with a market cap of $ 2.34 trillion.
Wall Street has become increasingly optimistic about Apple's outlook over the next year. Analysts predict that a recovering economy will fuel even more demand for iPhones, wearables such as Airpods and services.
With this optimism already built into the stock, it is important for the company to make an optimistic prediction for the coming years
2. Tesla
[19459002InvestorswillalsobewatchingTesla(NASDAQ:)closelyonWednesdaywhentheelectriccarmakerreportsQ4resultsafterthemarkethasclosedAnalystsexpectanequitygainof$101onsalesof$1037billion
With a market capitalization of more than $ 802 billion after rallying 800% in 2020, the Palo Alto, California-based electric vehicle manufacturer is uniquely positioned to capitalize on the increasing demand for electric cars & # 39; s while other manufacturers grapple during the pandemic.
Tesla is no longer facing the manufacturing problems that bogged it down for much of 2019. Earlier this month, the company told investors it has nearly reached its target of delivering 500,000 vehicles by 2020, which represents a 36% increase in production from the previous year.
The company's sales forecast for 2021 and the demand situation in China will be important details that investors want to know. As Model Y production grows, China could be responsible for more than 40% of Tesla's global shipments by 2022, according to a Jan. 14 research report by Wedbush Securities Inc. They also predict that Tesla would deliver more than 1 million vehicles next year.
3. Advanced Micro Devices
Advanced Micro Devices (NASDAQ 🙂 will report fourth quarter earnings on Tuesday, January 26, after market close. Analysts expect earnings per share of $ 0.47 on revenues of $ 3.02 billion.
Stocks of AMD have been on fire since March, when a broad market recovery began among chip makers. Its stock is up 78% in the past 12 months due to strong demand for its products, despite the devastating impact of the COVID-19 pandemic on the global economy.
AMD is rapidly becoming a powerful player in the semiconductor industry, where competition is fierce. Based in Santa Clara, California, AMD specializes in central processing units and graphics chips, both at the heart of modern computing.
Pandemic lockdowns have fueled laptop sales, as have gaming systems such as Microsoft's (NASDAQ 🙂 Xbox and Sony's (NYSE 🙂 PlayStation, which use AMD chips. Investors will get the latest insight into the demand trend for these markets as the stay-at-home climate lingers.
