Buckle your seat belts everyone, this is a massive week in earnings reports. You can check out the full calendar here but names reporting include Netflix, Amazon, Apple, Ford, Visa, Under Armour, McDonald’s, Microsoft, Zynga, Baidu, Caterpillar, and Starbucks. Phew, that was a mouthful and there are a bunch more I didn’t even get to mention. Here are my thoughts on four of the biggest tech names reporting this week:
Monday – Netflix (NFLX)
I like Netflix overall. It is the leader in quality, original programming (House of Cards, Orange is the New Black) and continues to focus on more cost effective international expansion. As more people become “cord cutters” (stop paying for Cable TV) and rely solely on streaming, I think Netflix will be an even more prevalent streaming preference for young consumers. Plus, from a price perspective, now is a good time to get in. Netflix is down nearly 25% from the all time high of $458 it posted last month. The price drop gives it more upside room to move off of good earnings news tonight. And given the strong positive reaction last quarter I think Netflix has another beat and upside swing tonight. I’m getting in on this one.
Wednesday – Apple (AAPL)
I’m steering clear of Apple for a while. They have yet to show they have any great plans with the treasure trove of cash they’re holding and have no new product launches coming up. Until I see some innovation on the horizon (i.e. the cool fitness tracker that’s been rumored) I’m out.
Wednesday – Facebook (FB)
Facebook has been making big moves recently. They just made two huge acquisitions, paying $19B for the mobile instant messaging service WhatsApp and $2B for the virtual reality company Oculus VR. Last quarter Facebook showed it can make real money off of mobile (the new battle ground for the success of social media sites) and is taking hard steps to keep the mobile money tree flowing. Last month Facebook brought all its mobile ad analytics in-house and soon it is supposedly unveiling its own mobile ad network. I’m bullish on Facebook.
Thursday – Amazon (AMZN)
Amazon is another one I’m staying away from. As I correctly predicted, their price increase on Prime hurt them and I’m not sure we’ve finished seeing the effect of that yet. Recent earnings reports weren’t great and I am not hopeful this report will be any better.