- Summary:
- While most companies struggled with the coronavirus pandemic and the consequent lockdowns that followed, Netflix, Tesla, and Amazon have done well.
While most businesses struggled with the coronavirus pandemic and the consequent lockdowns that followed, Netflix, Tesla, and Amazon have done well. This coming week, these companies are scheduled to announce their earnings reports. Will they impress investors?
Tuesday: Netflix
One of the most highly anticipated earnings report next week is Netflix. With most major cities on lockdown and going to movies no longer an option, most people have been spending more time on the media streaming platform. The company is expected to report an increase of 9.5 million subscribers which is 2.5 million more than estimates. With this, revenue for Q1 2020 is eyed at $5.73 billion.
The 4-hour time frame shows that the Netflix share price has given up some of its gains. It still has room to trade lower and still maintain its uptrend. Trendline support from connecting the lows of March 17 and April 9 is around 406.75. This price also aligns nicely with the 50% Fib level when you draw from the low of April 9 to the high of 421.05. However, if the company manages to impress, we may not see a pullback. It may just rally to 449.26.
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Wednesday: Tesla
Tesla share price enjoyed a strong bullish run this week. Part of it was due to risk appetite. However, investors had been bullish on the stock since it reported delivering more vehicles than expected for Q1 2020. The electric carmaker’s revenue is anticipated to post a 29.8% increase from last year at $5.89 billion.
The Tesla share price’s uptrend is intact. This is evidenced by the rising trend line that becomes apparent when you connect the lows of March 18 and April 2. If the company’s earnings report impresses investors, the Tesla share price could trade higher to its February highs at 945.25. On the other hand, if it does not, the stock may drop to 609.45 where it could test the trendline for support.
Thursday: Amazon
Some analysts forecast a lofty $87.4 billion revenue for the e-commerce giant, Amazon. On the daily time frame of Amazon CFDs, it can be seen that after the stock rallied to its all-time highs at 2,458.57, it retraced some of its gains. As of this writing, the Amazon share price is trading around 2,330.80 which coincides with the 23.6% Fib level when drawing the Fibonacci retracement tool from the low of April 3 to the high of April 16. Better-than-expected earnings driven by an uptick in online shopping could help the stock rally to new highs. However, disappointing figures to push the Amazon share price lower to 2,170.00 where the rising trend line (from connecting the lows of March 16 and April 3) coincide with the 50% Fib level.