A Volatile Earnings Season Continues
As far as earnings seasons go, this has been a pretty unpredictable one. Big tech stocks tumbled after they missed earnings, but other companies have managed to stave off poor performance for the quarter. Some, have actually seen their stocks rise on rosy guidance, despite a looming recession and apparent decline in consumer demand.
Last week, I was looking at AMD (NASDAQ: AMD) which came up short on both the top and bottom lines, but the stock surged after it provided a better-than-expected forecast. Rival chip maker Qualcomm (NASDAQ: QCOM) saw its stock price plummet despite beating on revenue and matching Wall Street expectations for earnings. So like I said, it’s been pretty unpredictable! Here are three more companies I am watching for next week.
Lucid (NASDAQ: LCID)
The luster has certainly worn off for Lucid, following all of the hype surrounding its luxury electric vehicles. The stock has fallen nearly 70% year to date, and in this current economic environment, I just don’t see much upside for the company until interest rates soften. Lucid did confirm last month that it is upping its production levels to triple what they were before. I still have my doubts about if it can ever become the Tesla Killer that it portrayed itself as prior to its SPAC merger. You might think the stock is cheap now but it still has a trailing 12-month price-to-sales ratio of 125! My initial thought on this company was that until it can put out a mass-market model, it will never be able to challenge the likes of Tesla. There just isn’t a large market for consumers looking for a $100,000 car. If Lucid can report growth in orders in this economy, then it might be worth taking another look at.
Coupang (NYSE: CPNG)
I’ve had my eye on Coupang and I have written about it in the past. For those who don’t know, Coupang is the leading eCommerce and delivery platform in South Korea. Its previous earnings report showed some growth and improvement in its margins. I want to make sure it has continued to grow in a post-pandemic world. More than half of Korea’s 51 million people use the app and its fulfillment network is top notch with nearly 100% of all orders being delivered within 24 hours. If Coupang knocks it out of the park, it is a stock I am looking to add to my portfolio.
The Trade Desk (NASDAQ: TTD)
Before you lump the Trade Desk in with other ad-reliant companies like Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOGL), you should know that TTD is a demand-side platform. This means that it doesn’t own any ad content but it provides a platform for ad buyers to create and manage campaigns. I have been a fan of the Trade Desk and am always a little confused when the stock falls in sympathy to stocks like Snap (NYSE: SNAP). I want to see continued revenue growth for the Trade Desk, even when the ad market is in a slump.
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