Here’s what to expect going into another big week for tech earnings

Earnings


Another handful of tech giants is scheduled to report earnings this week, and if last week was any indication, it could be another blowout.

Massive post-earnings moves from Alphabet, Amazon, Intel and Microsoft propelled the Nasdaq to record highs Monday and added a combined market cap of more than $155 billion since the results Thursday afternoon.

This week, Tesla and Facebook are scheduled to report after the bell Wednesday, and Alibaba and Apple are set to report Thursday after the bell. All four of these tech giants have been on a tear this year. Alibaba shares have soared 105 percent in 2017 and Tesla has surged 51 percent. Facebook and Apple both hit record highs Monday and the names have jumped 56 percent and 44 percent, respectively, year to date.

The options market is implying that it could be another gangbuster week for the group. Options traders are anticipating a 4 percent move in either direction for Apple, a 5 percent move for Facebook and Alibaba and a 6 percent move for Tesla. If these implied moves come to fruition, that could represent an $84 billion shift in market cap.

According to FactSet, analysts are expecting Tesla to report a loss of $2.28 per share on $2.9 billion in revenue. Apple is expected to report earnings of $8.99 per share on $227.5 billion in revenue and Facebook is projected to post a profit of $1.27 per share on $9.8 billion in revenue. Analysts are estimating that Alibaba will report $1.04 per share on $7.8 billion in revenue in its earnings report.

“Taking a look at this entire earnings season … it seems like the market is favoring tech here regardless of how their earnings come out. The news is viewed more positively,” Mike Khouw of Optimize Advisors said Friday on CNBC’s “Options Action.”

So far this earnings season, 94 percent of tech stocks have beat analyst expectations.



Source link

Products You May Like

Articles You May Like

Homeowners to start tapping $14.4 trillion in equity, research says
If your broker switches firms, weigh options before deciding to follow
Markets are just experiencing a ‘midlife crisis,’ veteran wealth manager says
Oppenheimer upgrades Nike for ’embracing the power of digital’
J. Tomilson Hill says Chinese museums are buying up the world’s art

Leave a Reply

Your email address will not be published. Required fields are marked *