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Stock market: the earnings of Google, Apple and more
2019-11-11 • Updated
The earnings season in the United States continues. This means that stocks of the largest American companies will likely make big moves. Below we have gathered some important information for those who want to trade on these releases. You can trade these stocks with FBS (learn more) and make money!
Monday, October 28
Alphabet Inc. (Google)
Time: 23:00 MT time
EPS forecast: $12.28B
Revenue forecast: $40.3B
Despite the fact that Alphabet is currently under regulatory scrutiny and antitrust probes, analysts expect its revenue to rise by about 20% y/y. Keep an eye on several things: the dynamics of mobile search and YouTube advertisements (Google’s main revenue driver); the performance of non-advertising businesses such as hardware sales that are starting to play a greater role; the firm's spending that has so far been quite substantial; the scale of losses in Waymo and Google Fiber (so-called ‘Other Bets’ segment).
This month the stock has managed to overcome the resistance line connecting the highs of April, July, and September. Now this line provides support in the $1,240 area. Below it, support is at $1,214 (50-day MA) and $1,190 (June-October support line) ahead of $1,175 (100-day MA). Still, Google is still within the long-term uptrend. Upside targets are at $1,289 and $1,300.
Tuesday, October 29
General Motors
Time: 14:00 MT time
EPS forecast: $1.38B
Revenue forecast: $34.95B
The forecasts for GM aren’t great. The main problems of the company include the workers’ strike and the continuing weakness in China, where it is planning to launch several new models. On the upside, General Motors has just reached some tentative agreement with workers, while the United States and China are making progress in trade talks. In addition, the firm’s sales should benefit from the new crossover lineup in the domestic North American market that accounts for more than three-fourths of total sales.
The stock has been trading with the bearish bias since the start of August. The price is currently close to the resistance line of the descending channel in the $37.00 area. The next levels to watch on the upside are at $37.90 and $38.80. The return below $35.60 will open the way for a decline to early October lows in the $33.80 zone.
Mastercard
Time: 15:00 MT time
EPS forecast: $2.02B
Revenue forecast: $4.43B
Analysts expect Mastercard to report strong figures as the company should benefit from higher retail spending, healthy e-commerce growth and an increase in digital payments - just like its competitor Visa that managed to beat estimates with its earnings and revenue last week. In addition, Mastercard is solidifying its position by acquisitions and strategic partnerships. At the same time, beware that unfavorable foreign exchange, as well as increased spending on marketing and promotion, will have a negative impact on Mastercard’s financial performance.
After a thrust to the upside at the start of September, the stock’s uptrend ran to a halt. The price has spent the past weeks in the $280/$260 range. If there’s a break to the downside, support will lie at $251.65 (200-day MA) and $246.45 (38.2% Fibo of the 2018-2019 advance). Resistance is at $275. A rise above $280 is needed to open the way up to $290.
Pfizer
Time: 16:00 MT time
EPS forecast: $0.62B
Revenue forecast: $12.27B
Notice that the pharma giant has managed to beat forecasts with the last four financial releases. This time, earnings per share are expected to decline by about 19% y/y, while revenue may fall by 8% y/y. The company has several strong products but so do its competitors. All in all, Pfizer's stock is rather cheap and any positive surprises in figures and outlook may spur the demand for it.
The stock still hasn’t recovered after the big selloff which took place in the second half of the summer. Resistance lies at $38.00 (38.2% Fibo retracement of the July-August fall) ahead of $39.25/50 (50% Fibo, 100-week MA). Below the 200-week MA at $36.40, support lies at $36.00 and $35.00.
Wednesday, October 30
Apple
Time: 23:00 MT time
EPS forecast: $2.83B
Revenue forecast: $62.94B
Analysts don’t expect much dynamics in Apple’s revenue. The company has to deal with the declining iPhone sales and investors’ attention will be focused on its attempts to diversify its business. Pay attention to the firm’s outlook for the fourth quarter (the holiday season) as well as its projections for Apple TV+ streaming service.
The stock’s long-term uptrend continues and the price is advancing ahead of the earnings report, so flat figures may cause a correction down. Support lies at $238, $233, and $230, while resistance is at $250 and $255.
Time: 23:00 MT time
EPS forecast: $1.9B
Revenue forecast: $17.36B
Facebook’s earnings are expected to rise for the first time since the last quarter of 2018. Investors will be eager to discover how the company views the prospects of its Libra cryptocurrency after big players like Mastercard, Visa and PayPal dropped out of the project. The company has been under pressure in recent months because of the antitrust investigations. Still, in Q2, its revenue turned out to be higher than expected and the number of active users increased. So, despite higher costs caused by regulatory hurdles, Facebook will still be interesting for investors if it is able to pull out decent financial figures.
After forming a top at $208.60 in July, the stock formed a couple of lower highs and traded sideways. Resistance is at $193 (September high) and $198.50 (April high) ahead of the $205.00 area. Support lies at $181.90 and $176.10. A decline below $173 will open the way down to $165.90.
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