A Week of Earnings: Navigating the Market’s Next Moves

Earnings Season: A Primer

Earnings season is a period when publicly-traded companies release their financial performance reports. These reports detail a company's revenue, profits, and other key metrics. The market closely watches these reports, as they can significantly impact a company's stock price. A strong earnings report can boost a stock's value, while a weak one can lead to a decline. Understanding how earnings work is crucial for investors. Companies typically report earnings quarterly, providing insights into their recent performance. Analysts often forecast these earnings, and the market reacts to the extent to which a company beats or misses these estimates.

Get a trading coach today!

This week is packed with earnings reports from major companies across various sectors. Let's delve into each company, their expected earnings, past performance, SWOT analysis, and potential investor implications.

Advanced Micro Devices (AMD)

• Investor Expectations: Investors are looking for continued strong growth in AMD's data center and gaming segments, driven by the adoption of its latest Ryzen and Radeon products.
• Last Earnings: AMD reported strong earnings growth, driven by increased sales of its data center and gaming products.
• SWOT Analysis:
  • Strengths: Strong product portfolio, innovative technology, and growing market share.
  • Weaknesses: Dependence on a few key products, manufacturing challenges, and intense competition.
  • Opportunities: AI and machine learning, data center expansion, and gaming market growth.
  • Threats: Economic downturns, increased competition, and potential supply chain disruptions.
• Investor Outlook: AMD's ability to continue its strong performance in the data center and gaming markets, as well as its ability to execute its long-term strategy, will be key to its future success.

Our Swing Trading Coach Mad Maverick Said: "AMD has outperformed in earnings, revenue, and EPS for the past four quarters, each time driving the stock higher. Once again, all attention will be on forward guidance. I expect strong results, new chip announcements, and AMD’s continued position as a solid second competitor to Nvidia. If the results exceed expectations, there’s potential for an upside above $160, with a next target of $168. However, if guidance is lowered or earnings fall short, I’d consider a downside move below $152, with targets at $138 and $134." -Mad Maverick

Snap Inc. (SNAP)

• Investor Expectations: Investors are looking for signs of stabilization in Snap's user growth and advertising revenue.
• Last Earnings: Snap reported a decline in revenue due to weaker advertising demand.
• SWOT Analysis:
  • Strengths: Innovative social media platform, strong user engagement, and augmented reality technology.
  • Weaknesses: Dependence on advertising revenue, intense competition, and potential privacy concerns.
  • Opportunities: Expansion into new markets, development of new features and products, and monetization of user data.
  • Threats: Economic downturns, increased competition, and potential regulatory changes.
• Investor Outlook: Snap's ability to attract and retain users, increase advertising revenue, and innovate will be key to its future success.

"$SNAP earnings will be released 10/29/2024 at 4:10pm (Tomorrow) Snapchat always seems to bring some drama with its big price swings! All eyes are on their guidance, if it’s relatively positive and they maintain their forward outlook, we could see an opportunity to trade it back up to the $13-15 range. On the flip side, any negative news on current earnings or future guidance might pull the stock back down to $8-9. Either way, it’s shaping up to be an exciting ride for both bulls and bears!" -Mad Maverick

Visa (V)

• Investor Expectations: Investors expect Visa to report strong earnings growth, driven by increased global spending and digital payments.
• Last Earnings: Visa reported strong earnings growth, driven by increased cross-border travel and e-commerce.
• SWOT Analysis:
  • Strengths: Strong global brand recognition, extensive network, and secure payment processing.
  • Weaknesses: Dependence on economic conditions and potential cyber security threats.
  • Opportunities: Expansion into emerging markets, digital payments innovation, and partnerships with fintech companies.
  • Threats: Increased competition from other payment networks and potential regulatory changes.
• Investor Outlook: Visa's ability to capitalize on the growth of digital payments and expand its global footprint will be key to its future success.

Our Options Coach SwingingBull said: "Visa has earnings Tuesday after the close. Technical analysis wise, if we see a positive reaction I am looking for it break into the $290's again. If we see a negative reaction then I would look for support around $268 to get tested. Visa has a great history of beating EPS expectations and is positioned as a power house in their sector." -SwingingBull

Mastercard Incorporated (MA)

• Investor Expectations: Investors expect Mastercard to report strong earnings growth, driven by increased global spending and digital payments.
• Last Earnings: Mastercard reported strong earnings growth, driven by increased cross-border travel and e-commerce.
• SWOT Analysis:
  • Strengths: Strong global brand recognition, extensive network, and secure payment processing.
  • Weaknesses: Dependence on economic conditions and potential cyber security threats.
  • Opportunities: Expansion into emerging markets, digital payments innovation, and partnerships with fintech companies.
  • Threats: Increased competition from other payment networks and potential regulatory changes.
• Investor Outlook: Mastercard's ability to capitalize on the growth of digital payments and expand its global footprint will be key to its future success.

https://twitter.com/pennyboisstock/status/1846990980672901345?s=46&t=qWBh5yJm8-meYnP_JNcU2g

McDonald's (MCD)

• Expected Earnings:
  • Consensus EPS Estimate: $3.22 (Earnings Whispers)
  • Consensus Revenue Estimate: $6.45 billion (Earnings Whispers)
  • Investor Expectations: Investors are expecting McDonald's to continue its strong performance, driven by increased digital sales, menu innovation, and higher pricing.
• Last Earnings: In the previous quarter, McDonald's exceeded expectations, benefiting from higher prices and increased customer traffic.
• SWOT Analysis:
  • Strengths: Strong brand recognition, global reach, efficient operations, and consistent menu innovation.
  • Weaknesses: Dependence on franchisees, potential supply chain disruptions, and negative publicity.
  • Opportunities: Expansion into emerging markets, digital innovation, and healthier menu options.
  • Threats: Economic downturns, increased competition, and changing consumer preferences.
• Investor Outlook: Investors should monitor McDonald's ability to maintain its strong performance in a challenging economic environment. Digital initiatives and international expansion will be key drivers for future growth.

Our Technical Analysis Coach Jay recently called $MCD at $297

Robinhood (HOOD)

• Expected Earnings:
  • Consensus EPS Estimate: -$0.15 (Earnings Whispers)
  • Consensus Revenue Estimate: $369.5 million (Earnings Whispers)
  • Investor Expectations: Investors are cautiously optimistic about Robinhood's earnings, as the company faces challenges from lower market volatility and increased competition.
• Last Earnings: The previous quarter saw a decline in revenue, primarily due to lower trading volumes.
• SWOT Analysis:
  • Strengths: User-friendly platform, commission-free trading, and a growing suite of financial products.
  • Weaknesses: Regulatory scrutiny, dependence on market volatility, and competition from established financial institutions.
  • Opportunities: Expansion into new markets, cryptocurrency trading, and personalized financial services.
  • Threats: Economic downturns, increased competition, and negative publicity.
• Investor Outlook: Robinhood's ability to diversify its revenue streams and attract new users will be crucial for future growth. Investors should monitor the company's efforts to mitigate regulatory risks and improve its platform's user experience.

Coinbase (COIN)

• Investor Expectations: Investors are looking for signs of recovery in the cryptocurrency market and increased user activity on the Coinbase platform.
• Last Earnings: Coinbase reported a significant decline in revenue due to the crypto market downturn.
• SWOT Analysis:
  • Strengths: Leading cryptocurrency exchange platform, strong brand recognition, and diverse product offerings.
  • Weaknesses: Regulatory uncertainty, dependence on cryptocurrency market volatility, and potential security risks.
  • Opportunities: Expansion into new markets, institutional adoption of cryptocurrencies, and development of new financial products.
  • Threats: Increased competition, negative regulatory changes, and potential hacks or cyberattacks.
• Investor Outlook: Coinbase's future success hinges on the overall performance of the cryptocurrency market and its ability to attract and retain users.

Check out our Coinbase 101 Class

SoFi Technologies (SOFI)

• Investor Expectations: Investors are looking for continued growth in SoFi's membership base and loan originations.
• Last Earnings: SoFi reported strong growth in its member base and revenue, driven by its diversified product offerings.
• SWOT Analysis:
  • Strengths: Strong brand recognition, diversified product offerings, and a focus on the millennial and Gen Z demographics.
  • Weaknesses: Regulatory risks, dependence on interest rate spreads, and potential economic downturn.
  • Opportunities: Expansion into new financial services, strategic partnerships, and international expansion.
  • Threats: Increased competition, adverse economic conditions, and potential regulatory changes.
• Investor Outlook: SoFi's ability to continue its growth trajectory and manage regulatory risks will be crucial for future success.

JetBlue Airways (JBLU)

• Investor Expectations: Investors are looking for signs of recovery in the airline industry and improved profitability for JetBlue.
• Last Earnings: JetBlue reported losses due to increased fuel costs and operational challenges.
• SWOT Analysis:
  • Strengths: Strong brand reputation, focus on customer experience, and a loyal customer base.
  • Weaknesses: Fuel price volatility, economic downturns, and intense competition.
  • Opportunities: Expansion into new markets, strategic partnerships, and increased focus on ancillary revenue.
  • Threats: Economic downturns, geopolitical risks, and potential labor disputes.
• Investor Outlook: JetBlue's ability to manage costs, improve operational efficiency, and capitalize on increased travel demand will be key to its future success.

Reddit (Reddit)

• Investor Expectations: Investors are looking for continued user growth and increased advertising revenue for Reddit.
• Last Earnings: Reddit reported strong user growth and revenue, driven by increased advertising and premium subscriptions.
• SWOT Analysis:
  • Strengths: Large and engaged user base, unique community-driven platform, and strong brand recognition.
  • Weaknesses: Dependence on advertising revenue, potential moderation challenges, and competition from other social media platforms.
  • Opportunities: Expansion into new markets, development of new features and products, and monetization of user data.
  • Threats: Economic downturns, increased competition, and potential regulatory scrutiny.
• Investor Outlook: Reddit's ability to maintain user engagement, attract advertisers, and innovate will be crucial for its future growth.

Google (GOOGL)

• Investor Expectations: Investors expect Google to report strong earnings growth, driven by its advertising business and cloud computing segment.
• Last Earnings: Google reported strong earnings growth, driven by its advertising business and cloud computing segment.
• SWOT Analysis:
  • Strengths: Dominant search engine, strong brand recognition, and a diverse portfolio of products and services.
  • Weaknesses: Intense competition, regulatory scrutiny, and potential privacy concerns.
  • Opportunities: Artificial intelligence, cloud computing, and autonomous vehicles.
  • Threats: Economic downturns, increased competition, and potential antitrust actions.
• Investor Outlook: Google's ability to innovate and adapt to changing market conditions will be crucial to its future success.

Etsy (ETSY)

• Investor Expectations: Investors expect Etsy to report continued growth in active buyers and sellers, driven by the popularity of online shopping and unique handmade goods.
• Last Earnings: Etsy reported strong earnings growth, driven by increased buyer spending and seller growth.
• SWOT Analysis:
  • Strengths: Strong brand recognition, unique marketplace, and loyal customer base.
  • Weaknesses: Dependence on consumer spending, competition from other e-commerce platforms, and potential supply chain disruptions.
  • Opportunities: Expansion into new markets, increased personalization, and development of new product categories.
  • Threats: Economic downturns, increased competition, and changes in consumer preferences.
• Investor Outlook: Etsy's ability to maintain its unique value proposition and attract new buyers and sellers will be key to its future success.

Microsoft (MSFT)

• Investor Expectations: Investors expect Microsoft to report strong earnings growth, driven by its cloud computing business, productivity software, and gaming segment.
• Last Earnings: Microsoft reported strong earnings growth, driven by its cloud computing business, productivity software, and gaming segment.
• SWOT Analysis:
  • Strengths: Strong brand recognition, dominant position in productivity software, and growing cloud computing business.
  • Weaknesses: Intense competition, potential regulatory scrutiny, and dependence on a few key products.
  • Opportunities: Artificial intelligence, cloud computing, and cybersecurity.
  • Threats: Economic downturns, increased competition, and potential antitrust actions.
• Investor Outlook: Microsoft's ability to continue its strong performance in cloud computing and other growth areas will be crucial to its future success.

Meta Platforms (META)

• Investor Expectations: Investors are looking for signs of stabilization in Meta's advertising business and growth in its Reality Labs segment.
• Last Earnings: Meta reported a decline in revenue due to weaker advertising demand and increased investments in its Reality Labs segment.
• SWOT Analysis:
  • Strengths: Strong brand recognition, large user base, and diverse portfolio of social media platforms.
  • Weaknesses: Intense competition, privacy concerns, and dependence on advertising revenue.
  • Opportunities: Metaverse, artificial intelligence, and e-commerce.
  • Threats: Economic downturns, increased competition, and potential regulatory changes.
• Investor Outlook: Meta's ability to navigate the challenges in the advertising industry and capitalize on the potential of the metaverse will be key to its future success.

Roku (ROKU)

• Investor Expectations: Investors are looking for signs of stabilization in the advertising market and increased user engagement for Roku's streaming platform.
• Last Earnings: Roku reported a decline in revenue due to weaker advertising demand.
• SWOT Analysis:
  • Strengths: Large user base, strong brand recognition, and a growing platform of streaming channels.
  • Weaknesses: Dependence on advertising revenue, competition from other streaming platforms, and potential content licensing costs.
  • Opportunities: Expansion into new markets, development of original content, and partnerships with content providers.
  • Threats: Economic downturns, increased competition, and changes in consumer preferences.
• Investor Outlook: Roku's ability to attract and retain users, increase advertising revenue, and diversify its revenue streams will be key to its future success.

Carvana (CVNA)

• Investor Expectations: Investors are looking for signs of improvement in Carvana's financial performance and operational efficiency.
• Last Earnings: Carvana reported significant losses due to increased inventory costs and operational challenges.
• SWOT Analysis:
  • Strengths: Innovative online car-buying platform, large inventory, and convenient delivery options.
  • Weaknesses: High operating costs, intense competition, and potential economic downturn.
  • Opportunities: Expansion into new markets, increased market share, and development of new services.
  • Threats: Economic downturns, increased competition, and potential regulatory changes.
• Investor Outlook: Carvana's ability to improve its profitability, reduce costs, and enhance its customer experience will be crucial to its future success.

Starbucks (SBUX)

• Investor Expectations: Investors are looking for continued growth in Starbucks' same-store sales and digital initiatives.
• Last Earnings: Starbucks reported strong earnings growth, driven by increased same-store sales and digital initiatives.
• SWOT Analysis:
  • Strengths: Strong brand recognition, global reach, and loyal customer base.
  • Weaknesses: Increased competition, rising input costs, and potential labor challenges.
  • Opportunities: Expansion into new markets, digital innovation, and premiumization of products.
  • Threats: Economic downturns, changes in consumer preferences, and potential health concerns.
• Investor Outlook: Starbucks' ability to maintain its strong brand, innovate, and execute its growth strategy will be key to its future success.

Uber Technologies (UBER): My favorite stock to day trade options

• Investor Expectations: Investors are looking for continued growth in Uber's mobility and delivery segments, as well as improved profitability.
• Last Earnings: Uber reported strong growth in its mobility and delivery segments, but also increased losses.
• SWOT Analysis:
  • Strengths: Strong brand recognition, large user base, and dominant position in ride-hailing and food delivery.
  • Weaknesses: Regulatory challenges, intense competition, and high operating costs.
  • Opportunities: Expansion into new markets, development of autonomous vehicle technology, and increased focus on freight.
  • Threats: Economic downturns, increased competition, and potential labor disputes.
• Investor Outlook: Uber's ability to balance growth and profitability, manage regulatory challenges, and innovate will be key to its future success.

Peloton Interactive (PTON)

• Investor Expectations: Investors are looking for signs of stabilization in Peloton's subscriber base and improved profitability.
• Last Earnings: Peloton reported a decline in revenue and increased losses.
• SWOT Analysis:
  • Strengths: Strong brand recognition, high-quality fitness equipment, and engaging workout content.
  • Weaknesses: Intense competition, high customer acquisition costs, and potential supply chain disruptions.
  • Opportunities: Expansion into new markets, partnerships with fitness studios, and development of new fitness products.
  • Threats: Economic downturns, changes in consumer preferences, and technological advancements.
• Investor Outlook: Peloton's ability to attract and retain subscribers, reduce costs, and innovate will be crucial to its future success.

Intel Corporation (INTC)

• Investor Expectations: Investors are looking for signs of improvement in Intel's manufacturing process and product competitiveness.
• Last Earnings: Intel reported a decline in revenue and profits due to manufacturing challenges and increased competition.
• SWOT Analysis:
  • Strengths: Strong brand recognition, extensive patent portfolio, and experienced workforce.
  • Weaknesses: Manufacturing challenges, declining market share, and intense competition.
  • Opportunities: Advanced chip manufacturing, AI and machine learning, and data center solutions.
  • Threats: Economic downturns, increased competition, and geopolitical tensions.
• Investor Outlook: Intel's ability to regain its technological leadership and improve its manufacturing process will be crucial to its future success.

Amazon.com, Inc. (AMZN)

• Investor Expectations: Investors are looking for continued growth in Amazon's cloud computing business, e-commerce operations, and advertising revenue.
• Last Earnings: Amazon reported strong earnings growth, driven by its cloud computing business, e-commerce operations, and advertising revenue.
• SWOT Analysis:
  • Strengths: Strong brand recognition, extensive product offerings, and large customer base.
  • Weaknesses: High operating costs, intense competition, and potential antitrust scrutiny.
  • Opportunities: Cloud computing, artificial intelligence, and autonomous vehicles.
  • Threats: Economic downturns, increased competition, and potential regulatory changes.
• Investor Outlook: Amazon's ability to innovate, expand its market share, and improve profitability will be key to its future success.

Apple Inc. (AAPL)

• Investor Expectations: Investors are looking for continued growth in iPhone sales, services revenue, and wearables.
• Last Earnings: Apple reported strong earnings growth, driven by iPhone sales, services revenue, and wearables.
• SWOT Analysis:
  • Strengths: Strong brand recognition, innovative products, and loyal customer base.
  • Weaknesses: Dependence on iPhone sales, high product costs, and potential supply chain disruptions.
  • Opportunities: 5G technology, augmented reality, and subscription services.
  • Threats: Economic downturns, increased competition, and potential regulatory changes.
• Investor Outlook: Apple's ability to continue innovating, maintain its strong brand, and expand its services business will be key to its future success.