Earnings Calendar (Jan. 25 – 29, 2021): Microsoft, Apple, Tesla, Facebook, Boeing, and more

Disclaimer

Technology

Microsoft – The technology giant expects to boost the earning from the cloud-computing business by 20%. The cloud sector has been the critical source of revenue driven by the virtual workplace and work-from-home. Its executives have approved the new cloud development to increase its market share against mega rivals such as Amazon AWS, Google, Oracle, IBM, Snowflake, and more. The stock is trading at $225.95 per share with a P/E ratio of 36.45 and market capitalization of $1.7 trillion (NASDAQ: MSFT).

Apple – The iPhone maker plans to release the Virtual Reality (VR) headset product early next year with a price range of $300 – $900. It will become a direct competitor of Facebook’s Oculus. The company expects to hit “record fourth-quarter earnings” driven by strong holiday sales and work-from-home product demand. The stock is trading at $139.07 with a P/E ratio of 42.46 and market capitalization of $2.3 trillion (NASDAQ: AAPL).

Facebook – The stock has not performed as other technology stocks due to political risk and antitrust scrutiny. The US Capitol riot has put significant pressure on the social media companies to tamp down hate speech and fake news. The company may also face downward pressure from the upcoming new stricter regulation. The stock is trading at $274.50 per share with a P/E ratio of 32.55 and market capitalization of $781 billion (NASDAQ: FB).

Tesla – The stock of electric carmaker has been the biggest sensation. The rose more than 800% since the beginning of 2020. Tesla’s addition to the S&P 500 also marked the significant momentum that the electric vehicle became too big to fail the industry. Biden’s decision to join Paris’s Climate Change Agreement will boost the stock as it will pressure the conventional automakers to meet the greenhouse emission requirement. The stock is trading at $846.64 per share with a P/E ratio of 1,677.45 and market capitalization of $802 billion (NASDAQ: TSLA).

AMD – The chipmaker has been performing well throughout 2020, fueled by Intel’s leadership crisis. The stock gained more than 100% return over a one-year period and reached a 49.8% share in the semiconductor market. A semiconductor is the major component of the digital economy as it supports anything from computers, mobile devices, and clouds. The stock is trading at $92.79 per share with a P/E ratio of 127.46 and market capitalization of $111 billion (NASDAQ: AMD).

Texas Instruments – The integrated circuit and electronics maker plans to beat the earnings expectation next week. The pandemic drove the company’s growth as it supports 2.9% of the global semiconductor market share. However, the stock growth is still lacking from its major rivals. The stock is trading at $172.81 per share with a P/E ratio of 32.66 and market capitalization of $158 billion (NASDAQ: TI).

Aerospace, Defense, and Airlines

Boeing – 737 Max resumed flight last week after a thorough investigation of two deadly crashes in 2018 and 2019 that killed 346 people. Boeing paid a $2.5 billion settlement against the criminal charges after admitting to criminal misconduct for misleading regulators about the faulty MACS flight control system. The stock dropped more than 100% from $440 per share before the deadly crashes and COVID-19 pandemic. The shares are currently trading at $205.84 with a market capitalization of $116 billion (NYSE: BA).

Raytheon Technologies – Raytheon is the third largest US defense contractor and fifth-largest military contractor in the world. The company manufactures military equipment and commercial electronics with annual revenue of more than $80 billion. The firm focuses its businesses in homeland security, missile defense, and precision engagement. The stock is trading at $67.58 per share with market capitalization of $102 billion (NYSE: RTX).

Lockheed Martin – The major US defense contractor is under pressure to deliver the next-generation F-35 fighter jet program after facing several production delays on its critical component and technical issues. However, the company releases positive guidance in earnings with an increase of $24.45 from $23.75 per share. The stock is trading at $339.88 per share with a P/E ratio of $14.64 and market capitalization of $95 billion (NYSE: LMT).

Southwest – The low-cost carrier is still struggling to recover after the rapid drop in airline travel due to the pandemic. The company expects a 40% reduction in passengers from the same quarter last year. The stock is trading at $47.39 per share with a market capitalization of $27.9 billion (NYSE: LUV).

American Airlines – The spike of COVID-19 cases in the US will negatively impact its earnings in the fourth quarter. The airline projects a loss of 50% from the same quarter last year. The stock is trading at $15.82 per share with a $9.6 billion market capitalization (NASDAQ: AAL).

Financials

Mastercard – The stock of the credit card company continues to lag behind the S&P 500 index. The shares gained 1.73% last month, while the index hit a 3.99% gain. The company faces intense competition from up and coming online payment companies from PayPal, Affirm, Square to Apple Pay, Google Pay, and more. The stock is trading at $328.99 per share with a P/E ratio of 49.39 and $327 billion of market capitalization (NYSE: MA).

Visa – The pandemic has accelerated the use of electronic payment and eliminated the use of physical cash. Visa is well-positioned to capture the opportunity in the digital economy with 61 million merchants worldwide. The newcomers put pressure on the share performance. The stock is trading at $202 per share with a P/E ratio of 41.33 and $445 billion market capitalization (NYSE: V).

American Express – Despite weak consumer spending due to pandemic, the company has seen steady improvement after the government’s monetary and fiscal stimulus. The stock is trading at $126 per share with a P/E ratio of 31.05 and $101 billion market capitalization (NYSE: AXP).