Stocks ended another week with investors continuing to worry about the spreading COVID Delta variant and its impact on US economic growth.
Last week the price ended about 2.2% lower, the second negative week in a row. The share price fell by about 1.7% this week, while the price fell by 1.6%. The rise in the Delta variant appears to have peaked in Florida and other states, according to a Wall Street Journal report, although cases and hospitalizations are still rising in Kentucky, North Carolina and parts of the Midwest.
How quickly this variant comes under control and how quickly the economic recovery resumes has important implications for the performance of the US this fall and during the winter holidays. With this uncertain economic outlook in mind, we've compiled a list below of three stocks that could dominate market activity this week.
1. Oracle
Oracle (NYSE:) will release its first quarter 2022 earnings report on Monday, September 13, after the market closes. Analysts forecast $0.97 per share earnings on revenue of $9.76 billion.
Shares of the Austin, Texas-based technology company have strengthened this year as demand for the tech giant's cloud computing services picks up after years of stagnant sales. The stock closed Friday at $89.68, up 38% from the year. No surprise, the enterprise segment has also boosted growth prospects as the company focuses on cloud computing as an accelerator of the world's second largest software maker.
ORCL plans to spend more on its cloud division as it tries to compete with other tech giants such as Amazon (NASDAQ:) and Microsoft (NASDAQ:), both of which lead Oracle in this arena.
2. Apple
Shares of Apple (NASDAQ:) may remain under pressure over the coming week after a federal judge ordered the company Friday to change the way it operates its App Store business after it was shut down. accused of ' monopolistic behavior.
The stock fell 3.3% after the ruling, the biggest drop since May 4, erasing about $85 billion in market cap from the iPhone maker. Shares closed at $148.97 on Friday.
A federal judge granted an injunction filed by Fortnight maker Epic Games that would allow developers to direct consumers to third-party payment methods for mobile apps. It also ordered the game maker to pay damages to Apple for breach of contract.
“The high-profile case highlights broader concerns about online platforms and digital commerce. Regulators and lawmakers in Washington, Brussels and beyond are trying to rein in big tech companies,” the Wall Street Journal said in a report.
3. Zoom Video
Zoom Video Communications (NASDAQ:) will hold a briefing for financial analysts Monday, amid signs that video conferencing platform growth is coming to an end as schools and offices reopen.
Shares of the San Jose, California-based company are under pressure after management issued a current quarter sales forecast on Aug. 30 that fell short of some analysts' estimates. at 301.50, down more than 10% for the year after growing fivefold in 2020 as usage of its communications platform exploded amid the pandemic. But that rapid growth is slowing down sooner than many analysts had predicted. Zoom rose 369% in the fiscal fourth quarter of 2020, 191% in the first quarter of 2021 and 54% in the three months ended July 31. The company's forecasts indicate that sales in the fiscal fourth quarter are up just 15 percent. % can rise.
