Shares To Watch: Apple, Amazon, Microsoft, Meta Platforms Headline Enormous Week of Earnings

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The most important week of the earnings season will hold traders heads on a swivel with Microsoft (MSFT), UPS (UPS), Meta Platforms (META), Boeing (BA), Pfizer (PFE), Apple (AAPL), and Amazon (AMZN) ) just some of the powerhouses resulting from report. Whereas the financial calendar contains updates on new houses gross sales, client confidence, sturdy items, Q2 GDP and the PCE worth index – the two-day FOMC assembly would be the main occasion of the week. The Federal Reserve is predicted to lift the goal vary for the federal funds price by one other 75 factors to 2.25% to 2.50%, though futures buying and selling nonetheless implies a 20% probability of a 100-point hike. Heading into the assembly, just about each FOMC participant has firmly acknowledged that lowering inflation is the highest precedence at current, but in addition steered away from tipping off a 100-point bazooka. BNP Paribas reminds that the Fed’s most well-liked monetary market recession predictor, the near-term ahead unfold, stays upward sloping. “Regardless of an enormous development deceleration this 12 months, which can appear to point that the US economic system is heading right into a recession, a tough touchdown might be averted, in our view – however its an in depth name,” previews the agency into the large week. Traders might finish the week with a clearer view on recession danger,


Earnings highlight: Monday, July 25 – NXP Semiconductors (NXPI), Whirlpool (NYSE:WHR), and F5 (FFIV).

Earnings highlight: Tuesday, July 26 – Common Motors (GM), Common Electrical (GE), Microsoft (MSFT), Alphabet (GOOG), Visa (V), Coca Cola (KO), McDonald’s (MCD), UPS (UPS), Unilever (UL), Texas Devices (TXN), and Chipotle (CMG).

Earnings highlight: Wednesday, July 27 – Humana (HUM), Boeing (BA), Meta Platforms (META), Qualcomm (QCOM), Bristol-Myers Squibb (NYSE:BMY), Shopify (SHOP), Ford (F), Qualcomm (QCOM), and Kraft Heinz (KHC).

Earnings highlight: Thursday, July 28 – Valero Vitality (VLO), Pizer (PFE), Anheuser-Busch InBev (BUD), Mastercard (MA), Southwest Airways (LUV), Barclays (BCS), Pfizer (PFE), Merck (MRK), Intel (INTC) , Altria Group (MO), Southern Firm (SO), Apple (AAPL), Amazon (AMZN), and Comcast (CMCSA).

Earnings highlight: Friday, July 29 – Exxon Mobil (XOM), Procter & Gamble (PG), Chevron (CVX), AbbVie (ABBV), and Constitution Communications (CHTR).

IPO watch: Esports platform developer Cellular International Esports (MGAM) is predicted to begin buying and selling subsequent week. The corporate is targeted on the rising esports market in India. Different IPO occasions to look at are the analyst quiet interval expiration on Ivanhoe Electrical on July 25, in addition to the IPO lockup interval expirations on Credo Know-how (NASDAQ: CRDO) and Knightscope (NASDAQ:KSCP) for sure block of shares.

SPAC watch: Shareholders with Waldencast Acquisition Corp. (NASDAQ:WALD) meet on July 25 to vote on taking skincare manufacturers Obagi & Milk Make-up public in a three-way SPAC deal that may worth the brand new firm at $1.2B. On July 27, two SPAC offers go to a vote with shareholders with Duddell Avenue Acquisition Corp. (DSAC) assembly to vote on taking AI-driven enterprise SaaS firm FiscalNote public and shareholders with Brookline Capital Acquisition (NASDAQ: BCAC) assembly to vote on taking most cancers drug agency Apdemanden public. Shareholders with CHW Acquisition Company (CHWA) vote on July 28 on the deal to take canine strolling and pet companies firm Wag Labs public. Wag competes with Rover (ROVR), which went public final 12 months.

Dividend watch: Brazilian oil producer Petrobras (NYSE:PBR) may announce dividends of between $10B to $14B relative to its second-quarter outcomes when it reviews on July 28, based on Credit score Suisse. That vast payout would symbolize a dividend yield of as much as 20% in a single quarter. Another quarterly dividend payout predictions embrace hikes from Wells Fargo & Firm (WFC) to $0.30 from $0.25, Wingstop (NASDAQ:WING) to $0.20 from $0.17, OFG Bancorp (OFG) to $0.17 from $0.15, Cintas (NASDAQ:CTAS) to $1.07 from $0.95, and Marathon Oil (MRO) to $0.09 from $0.08.

Apple earnings preview: Apple (AAPL) is in line to report earnings on July 28 for 1 / 4 that noticed important disruption from the COVID-related slowdowns in China. The newest learn from analysts is that iPhone demand is holding up barely higher than anticipated, though the macro backdrop has tempered enthusiasm considerably over the trajectory for a again half of the 12 months that features the iPhone 14 launch. Morgan Stanley thinks the Apple earnings name has added significance this quarter, with administration’s macro commentary more likely to be comparatively guarded. Within the background, high-income client sentiment is flashing indicators of warning and a powerful US greenback is inflicting Apple to hike costs in some worldwide markets. That every one provides as much as the potential that FY23 consensus income and EPS marks could also be too excessive. On a extra constructive notice, Wedbush Securities reminds that Apple continues to concentrate on a sturdy product pipeline and companies ramp into 2023. The 2023 product setup could possibly be a purpose to purchase the dip in Apple if earnings disappoint.

Amazon earnings preview: Amazon (AMZN) will report earnings on July 28 to subdued expectations resulting from late-quarter F/X stress and the influence of inflation. Whereas a powerful Prime Day occasion in July and stable current reads on client spending are anticipated to assist income steerage from the e-commerce large, Jefferies warns that Q3 working revenue outlook could possibly be revised decrease resulting from worsening inflation and hard comparables. The OI steerage reduce is seen being the final guide-down and a possible clearing occasion for bettering sentiment. JPMorgan named Amazon its high 12-month FANG inventory and nonetheless sees $70B of 2023 revenue potential from 3P, AWS and promoting that may be higher realized as retail pricing normalizes and the logistics community is optimized. Even with estimates tightened, AMZN buying and selling at 11.3X the 2023 EBITDA estimate is famous to be a reduction to the historic common. Amazon’s (AMZN) earnings report and steerage may influence various corporations. Aterian (NASDAQ:ATER) generates 93% of its income from the e-commerce large, whereas NovaBay Pharma (NBY) Plug Energy (PLUG) each lean on AMZN for greater than 40% of gross sales. In the meantime, Netgear (NTGR) and Merely Good Meals (SMPL) have seen their shares costs transfer in tandem with Amazon 88% of the time within the week after earnings.

Again to highschool breakdown: The spending outlook for the back-to-school season seems to be extra muted this 12 months as indicated by a proprietary survey run by analysis agency Gordon Haskett. The agency stated 37% of respondents plan to spend extra on back-to-school objects than a 12 months in the past versus 52% a 12 months in the past with fuel and meals inflation impacting family spending sentiment. Attire and college provides are anticipated to see the biggest class bumps and electronics is seen lagging. Greenback shops and off-price retailers are forecast to see the biggest uptick as prime BTS buying locations. Greenback Tree (DLTR) and Macy’s (M) have been singled by the agency as two retail chains with a notable enhance in client curiosity inside the spending survey.

Brief squeeze candidates: S3 Companions revealed an inventory of the crowded quick trades based mostly on elements like whole quick {dollars} in danger, quick curiosity as a real proportion of an organization’s tradable float, inventory mortgage liquidity, and buying and selling liquidity. Primarily based on the agency’s proprietary scoring technique, the shares most vulnerable to seeing a brief squeeze embrace Faraday Future Clever Electrical (NASDAQ:FFIE), Canoo (GOEV), Gossamer Bio (GOSS), Verve Therapeutics (VERV), Lightwave Logic (NASDAQ:LWLG), Beam Therapeutics (NASDAQ:BEAM), Cowen Group (NASDAQ:COWN), Veru (VERU), Past Meat (NASDAQ:BYND), and Destiny Therapeutics (FATE), Lordstown Motors (RIDE), Rocket Firms (RKT), Dutch Bros. (NYSE:BROS), Fisker (FSR), Marathon Digital (MARA), GameStop (GME), and Lucid Group (LCID). The shares within the crowded quick record all have incurred double-digit proportion mark-to-market losses during the last 30 days coupled with mark-to-market losses during the last seven days.

SPAC watch: Shareholders with Waldencast Acquisition Corp. (WALD) meet on July 25 to vote on taking skincare manufacturers Obagi & Milk Make-up public in a three-way SPAC deal that may worth the brand new firm at $1.2B. On July 27, two SPAC offers go to a vote with shareholders with Duddell Avenue Acquisition Corp. (DSAC) assembly to vote on taking AI-driven enterprise SaaS firm FiscalNote public and shareholders with Brookline Capital Acquisition (BCAC) assembly to vote on taking most cancers drug agency Apexigen public. Shareholders with CHW Acquisition Company (CHWA) vote on July 28 on the deal to take canine strolling and pet companies firm going Wag Labs public. Wag competes with Rover (ROVR), which went public final 12 months.

Company occasions: Shareholders with Spirit Airways (NYSE:SAVE) are lined up as soon as once more on to vote on the buyout provide from Frontier Group (ULCC). Later within the week, the JetBlue (JBLU) provide expires. There’s a good probability the airline buyout drama extends into August. Amazon (AMZN) will maintain its annual AWS re:Inforce studying convention on July 26. On the identical day, Zenvia Inc. (NASDAQ: ZENV) will maintain the primary Investor Day within the firm’s historical past with displays centered on the long-term plan and the way it envisions the way forward for CX. REE Automotive Ltd. (NASDAQ:REE) will maintain a hybrid occasion on July 28 that features a enterprise replace, Q&A session with administration, and on-site participation for analysts and traders. Learn extra in regards to the occasions that might influence shares costs subsequent week in Looking for Alpha’s Catalyst Watch.

Barron’s mentions: Amazon (AMZN) makes the quilt this week simply forward of the e-commerce large’s earnings report. The bullish factors laid out on Amazon embrace an promoting enterprise that has annualized income of near $40B, which is almost 4 instances the dimensions of Twitter (TWTR) and Snap (SNAP) mixed. Amazon can be stated to have became a media powerhouse with the weekly NFL rights to a key evening, in addition to a rising logistics powerhouse that more and more rivals FedEx (FDX) and United Parcel Service (UPS). In fact, there’s additionally the AWS enterprise that accounts for 16% of the corporate’s gross sales and greater than 100% of its revenue to offset the money-losing companies. Redburn Analysis analyst Alex Haissl made the case that AWS is now the strongest cloud supplier general, with a platform that features uncooked information storage, database software program, functions, and analytics. That makes a possible AWS spinoff down the highway an attractive purpose to purchase Amazon now with shares down greater than 30% YTD.

Sources: EDGAR, Bloomberg, CNBC, Reuters,