NFLX Pre-Earnings Analysis: Chart done on daily timeframe. The streaming king is set to report earnings this week on Tuesday after market close. Netflix will be on the first large cap tech companies to report earnings so many investors are watching close to determine consumer behavior in the steaming sector. The company is expected to beat expectations thanks to their advertising support plan, but rising competition in the space from Prime, Disney+, and Hulu could hold weight on Netflix’s growth. The biggest opportunity for the company remains the same as it was years ago, which is the international market. Netflix has done a great job at keeping the American consumer, and they’re applying different methods in attempt to capture international...
PEP Pre-Earnings Analysis Chart done on daily timeframe. Investors are nervous about PepsiCo’s earnings this quarter after the company’s products got pulled off the shelves of a large supermarket in Europe due to price increases. During the years of heightened inflation, companies like Coca-Cola and PepsiCo managed to continue posting growth because they raised prices to match inflation. American consumers specifically continued buying products as prices went up, but European customers proved to be more sensitive to price hikes, so much so that Carrefour dropped their product from their 1000+ stores across Europe. The boycott of higher prices in Europe might spill over to other places, and with so much competition in the space, PepsiCo’s leadership need to strategize a...
KO Pre-earnings Analysis: Chart done on daily timeframe. Consumer defensive stocks surprisingly did not perform well in 2023, despite all the events that happened last year that would’ve pushed them higher. We often see market buyers pouring money into names like Coca-Cola during elevated levels of uncertainty because these companies tend to bring steady and predictable numbers, but investors turned a blind eye to that last year. One of the biggest challenges KO faced in the last 24 months was inflation and how to adjust to it without scaring their consumers. The company did a great job at adjusting their prices and still keeping their customers buying, sustaining quarterly revenue growth through the first three quarters of 2023. They’ll be...
Taiwan Semiconductor TSM shares are trading higher after the company’s latest earnings report came in above expectations. The semiconductor company beat on revenue and profit projections, and raised forecast for this year. Leaders at the company now see 20% growth in 2024, citing demand for artificial intelligence to be the main reason. Since the rise of ChatGPT and generate AI, companies in all types of sectors are racing to become leaders in the space, and that demand has translated to more revenue for semiconductor giants like TSM, Nvidia, AMD…etc. Looking at their year over year revenue trend, TSM was growing steadily between 2017-2022, but had a large dip in revenue in 2023. However their earnings forecast for 2024 is set...
Spirit Aerosystems Holdings Spirit AeroSystems is a company that manufactures aero structures for aircrafts. The company is contracted with both commercial and defense customers, and has a foothold in the industry. It has grown to be one of the world’s largest manufacturers thanks to its massive contract with Boeing. Demand for new planes has grown rapidly in recent years, with countries in the Middle East and India requesting hundreds of new planes. This has helped boost revenue steadily quarter over quarter in the last year for SPR. Unfortunately, net profits have remained negative so the company is currently operating at a negative price to earnings ratio, but with the right leadership and continuous revenue growth, SPR is a contender for...
