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