on the crypto
This reporting season confirmed black expectations due to the current pandemic and will be the worst after the 2008 financial crisis, but some big names may be giving good news in the coming week.
Forecasts for the second quarter
Le Tesla shares Inc. TSLA, + 0,01%, Microsoft Corp. MSFT, -0,51%, and Intel Corp. INTC, + 1,45% highlight an extensive list of earnings reports over the last period. So far, the results have been sad. S&P 500 components posted a 47,4% decline in earnings in the second quarter.
This would mark the sharpest drop in earnings since the fourth quarter of 2008, when profits plunged 70%. Overall, the tech giants Intel and Microsoft are following a better trajectory, as both likely benefited from the lockdown measures during the coronavirus pandemic that led to increased demand for remote work services and equipment and are expected to increase earnings per share growth, recording slight decreases in net income.
Uncertainties about Tesla TSLA stock
Tesla is expected to be in the red for the second quarter, according to FactSet estimates, although analysts are expecting a tighter loss than a year ago. Some continue to hope that the company can post a surprise GAAP profit and bring Tesla into the S&P 500, which requires four quarters of profit to be part of it.
Tesla has had earnings in the past three quarters. Other key names in the coming week include United Airlines Holdings Inc. UAL, -1,65% and Southwest Airlines Co. LUV, -0,23%, social media Twitter Inc. TWTR, + 1,50% and Snap Inc. SNAP, + 2,67%.
Tesla has crushed and exceeded delivery expectations for the second quarter, favoring the strong rally of the 2020 title, and now the company will have to face a new test, revealing the financial impact of COVID-19 on its business.
Delivery numbers suggest that financial forecasts may be too conservative, Barclays analyst Brian Johnson wrote. He already predicted a GAAP profit of $ 4,2 million prior to publication on delivery data and has since increased his estimate to $ 42 million.
Twitter's situation a week after the well-known social media hack
Twitter will face investors on Thursday morning, just over a week after the company suffered a disturbing security breach that allowed hackers to access numerous important Twitter accounts in what appears to have been a bitcoin scam.
The company is still investigating the incident and management will surely have to answer difficult questions about Twitter's privacy and security mechanisms. John Egbert of Stifel expects Twitter to increase its security spending even further.
