META Chart done on hourly timeframe. Meta shares will be tested this week as the company gets ready to roll out their fourth quarter earnings results. Analysts are extremely optimistic about the numbers, more than doubling their expectations from same quarter last year. Over the last four quarters, Meta has managed to surpass quarterly projections, which has helped the stock make a massive recovery in 2023. Now that it is trading at all time highs and an expensive price to earnings ratio of 35, these earnings will likely make or break the next quarter for the stock. Profitability has to increase for the price to earnings ratio to adjust, or else the stock’s price will have to decrease to correct...
Tesla Pre-earnings Analysis Tesla is set to report its fourth quarter earnings and its investors are nervous about the results. Despite the market rally, the stock has been selling off for weeks as competition wages and price cuts save investors. Tesla’s past quarter has also had recalls and disappointing cyber truck reviews. Supply chain issues due to uncertainty in the Red Sea has also recently impacted Tesla’s production, adding more pressure to the company. Tesla has missed expectations on two of its last four earnings, which explains why the stock is flat from about a year ago. Investors are already unhappy with its performance, so this earnings report could set the tone for 2024. Another missed earnings or unexpected hiccup...
RTX Corp. Q4 Earnings Analysis RTX shares are trading higher after the company’s most recent earnings report reflected strong growth in the fourth quarter. The Aerospace & Defense company reported $1.29 in EPS and $19.7B in revenue, both above analyst expectations. Defense spending has sharply increased in the last 24 months, leading companies like RTX to more contracts. The biggest takeaway wasn’t in what they did last quarter, but what they expect to do in 2024. The company raised guidance for the year ahead, which is likely the main reason why markets are so excited. Technical analysis: The post-earnings power gap-up moved the stock’s daily candle above the 200 day moving average (not shown in chart above). Institutional investors and...
SNAP Chart done on daily timeframe. Shares of Snapchat have enjoyed a rally over the last quarter after the company posted better than expected earnings in Q3. Snapchat posted positive revenue growth for the first time after falling behind in Q1 and Q2, giving investors hope that the company is making a small come back, but they will be tested soon when their earnings come around again. Investors are looking for another quarter with revenue growth, but will also be looking for improvement in net income. Although the company’s revenue growth last quarter, their losses widened, nearly guaranteeing that 2023 will be another losing year, adding to their seven year “streak”. The company’s balance sheet has a positive ratio, but...
XLE
Shares of energy companies are reaching new 52 week lows as capital rotation moves from oil stocks to technology stocks. XLE, which is the largest energy fund on the market, has pulled back about 18% from its 2023 highs. But worldwide energy demand, specifically for oil, has only increased over the last four years, so it’s only a matter of time before oil companies get bought up again. XLE holds shares in companies such as Exxon Mobile, Chevron, ConocoPhillips, and many more fundamentally strong energy companies, which makes it a worthy contender for a portfolio.
