The Week Ahead
This week will see a flood of highly-anticipated earnings reports from companies across various sectors. Here's a look at some of the key releases and what's on investors' minds:
Monday, May 6th
Lucid Group (LCID) - ★★★ : The electric vehicle maker will need to show continued progress ramping up production and deliveries as it battles established players like Tesla. Investors will scrutinize costs and cash burn.
Tuesday, May 7th
Disney (DIS) - ★★★★ : The media giant's streaming trajectory with Disney+ remains the focal point as cord-cutting accelerates. Parks revenue and projected reopening impacts will also be closely watched.
UBS (UBS) - ★★★ : Investors will have their eye on revenues, provisions for credit losses, and capital positions at this Swiss bank will be under the microscope.
Electronic Arts (EA) - ★★★ : The video game publisher's pipeline of new titles and live services engagement levels will be dissected by gaming analysts.
Rivian (RIVN) - ★★★ : Like Lucid, this EV startup's production, delivery, and spending figures will determine if it can achieve sustainable, profitable growth.
Wynn Resorts (WYNN) - ★★★★ : Macau's gambling reopening and the overall Asian gaming/travel recovery trajectory are key areas of focus.
Wednesday, May 8th
Affirm (AFRM) - ★★★★ : This "buy now, pay later" lender's credit quality, customer acquisition, and profitability path will be picked apart.
New York Times (NYT) - ★★★★ : Digital subscription metrics and pricing power are priorities for this legacy publisher.
Uber (UBER) - ★★★★ : Investors want to see continued market share gains for this ride-share leader's mobility/delivery segments.
Airbnb (ABNB) - ★★★ : Travel demand trends domestically/globally and the platform's pricing power will drive sentiment.
Duolingo (DUOL) - ★★★★ : Investors will be watching user growth and monetization updates at this edtech platform.
Instacart (CART) - ★★ : With concerns around consumer spending due to rising inflation, grocery delivery volumes will be carefully assessed.
Robinhood (HOOD) - ★★★★ : Can Robinhood deliver on customer growth, trading volumes, and efforts to develop new revenue streams that will be in focus.
TKO Group (TKO) - ★★★★ : Investors will be watching on how the WWE and UFC parent is dealing with intergrating the two entities?
TopGolf Callaway (MODG) - ★★★ : This golf/entertainment company's demand trends will be analyzed. Do consumers still have excess cash to spend on this leisure and entertainment product?
Thursday, May 9th
Fiverr (FVRR) - ★★★ : Can this gig economy platform sustain stellar growth? Metrics like take rates, geographies, and verticals adopted matter.
Warner Bros. Discovery (WBD) - ★★ : Streaming execution with Max's relaunch is paramount for this media conglomerate.
Dropbox (DBX) - ★★★ : Cloud storage/collaboration demand as a leading indicator for enterprise IT spend.
Sweetgreen (SG) - ★★★ : Amidst consumer spending uncertainty, can this salad chain sustain premium pricing?
This compressed calendar provides crucial corporate updates impacting numerous sectors from technology to media, banking, retail, and travel. Investors will dissect these reports to better handicap economic trajectories.
A Look Back
Tesla Call Options See Explosive Gains As China Unlocks Growth Potential
Tesla (TSLA) - ★★★ - Ranked #58 in Q2 2024 Large Cap Equity Rankings
Tesla's stock soared 15% on Monday, fueling a stunning rally in bullish call options amid renewed optimism over the electric carmaker's growth prospects in China. Certain calls expiring in May 2024 surged as much as 1,000% in a single day's trading as investors piled into bets that Tesla's growth story may have turned a corner.
The catalyst was a crucial regulatory greenlight from Beijing following CEO Elon Musk's whirlwind trip to meet with top Chinese officials. After his 24-hour visit, China signaled its approval for Tesla to roll out its advanced driver-assistance software in the crucial market.
Starbucks Stock Nosedives 16% Amid Boycott, Inflation Woes
Starbucks (SBUX) - ★★★ - Ranked #78 in our Q2 2024 Large Cap Equity Rankings
Starbucks Corporation's shares experienced a significant downturn on Wednesday, plummeting 16% during intraday trading to their lowest level in nearly two years. The coffee giant's stock tumbled after the company slashed its annual forecasts, citing persistent weak demand from inflation-weary U.S. customers and a slower-than-expected economic recovery in China.
The company's decision to raise prices last year has backfired, as consumers grappling with rising costs have resorted to brewing coffee at home instead of frequenting cafes and restaurants. This shift in consumer behavior has dealt a blow to chains like Starbucks, which reported a decline in same-store sales for the first time in nearly three years.
Live Nation Surges After Blowout Earnings on Booming Concert Business
Live Nation Entertainment (LYV) - ★★★★ - Ranked #10 in Q2 2024 Equity SMID Rankings
Shares of Live Nation Entertainment (NYSE: LYV) are up over 9% in intraday trading, marking the biggest single day gain for the concert promotions giant since May 2023. The stock rally comes after Live Nation reported blowout first quarter earnings after the market closed on Thursday.
Live Nation smashed Wall Street's expectations, with revenue surging 21% to $3.8 billion, well above analysts' consensus estimate of $3.26 billion. The company reaped the benefits of the red hot demand for live concerts, with concert revenue soaring 26% to a record $2.88 billion. The ticketing business also grew solidly, with revenue up 7% to $723.2 million.
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