Friday was a mixed day for stocks on Wall Street, but the benchmark still posted its third consecutive weekly gain amid optimism surrounding the current third quarter earnings season.
Profits are ramping up this coming week, with reports expected from mega-cap tech stocks including Apple (NASDAQ :), Microsoft (NASDAQ :), Amazon (NASDAQ :), Google-parent Alphabet (NASDAQ: ) and Facebook (NASDAQ :).
We will also see other top companies making reports, such as Boeing (NYSE :), Caterpillar (NYSE :), McDonald’s (NYSE :), Coca-Cola (NYSE :), General Electric (NYSE :), Visa (NYSE :), Mastercard (NYSE :), Ford (NYSE :), General Motors (NYSE :), United Parcel Service (NYSE 🙂 and Exxon Mobil (NYSE :).
Add to the important posts above some US growth data for the third quarter, and the week is about to be filled with information.
Whichever direction the market takes, below we highlight one action that may be called for in the coming days and one that may experience further losses.
Remember though, our timeline is only for the coming week.
Stock to buy: Datadog
Datadog (NASDAQ 🙂 will be in the spotlight this week, as the top-tier enterprise software maker, which provides a monitoring and security platform for cloud applications, hosts a much-anticipated Investor Day on Wednesday. October 27.
Wednesday’s presentations, which will be streamed live on the Datadog website starting at 9:30 a.m. ET, are part of the annual “Dash 2021” user conference, which begins on Tuesday. CEO Olivier Pomel, and other members of DDOG’s leadership team, are expected to reveal new details about the cybersecurity company’s new products and features.
Last year, Datadog shares rose 9% in the week following the event.
Datadog, which has names such as FedEx (NYSE :), AT&T (NYSE 🙂 and Airbnb (NASDAQ 🙂 as customers, has been this year as it enjoys strong demand for its observability solutions from the cloud in the business segment.
DDOG stock closed at a new all-time high of $ 162.39 on Friday, which earned the New York-based monitoring and analysis platform specialist a valuation of $ 50.3 billion. Since the start of the year, Datadog shares have climbed 65%, easily surpassing the 21% increase in the S&P 500 over the same period.
Datadog is expected to release its third quarter financial results before the US markets open on Thursday, November 4. Revenue is expected to jump 60% year-on-year to a record $ 247.8 million, reflecting growing demand for its cloud-based security tools.
Stock to empty: Twitter
Twitter (NYSE 🙂 stock is expected to experience another volatile week as investors brace for disappointing financial results from the social media platform led by Jack Dorsey. The San Francisco, Calif.-Based tech company is expected to release third-quarter numbers after the U.S. market closes on Tuesday, October 26.
Analysts are calling for earnings per share of $ 0.17, down about 10% from EPS of $ 0.19 in the. Revenue, meanwhile, is expected to grow about 38% year-on-year to $ 1.29 billion.
Beyond the numbers at the top and bottom, investors will pay close attention to Twitter’s update on the number of its Monetizable Daily Active Users (mDAU). Twitter said the key metric rose 11% year-on-year to 206 million in the last quarter.
Perhaps more importantly, Twitter’s outlook for the rest of the year will be watched as it faces the negative impact caused by changes to Apple’s iOS 14.5 release, which limits its ability to keep up with the news. user activity on third party sites.
Last week, Snap (NYSE 🙂 – which like Twitter generates most of its revenue from advertising – made a gruesome report and sent an industry wide warning that the privacy changes Apple seriously disrupted its advertising business.
Based on moves in the options market, traders are pricing a possible implied 12.9% two-way change in Twitter shares after the results.
TWTR stock, up 15% year-to-date, closed Friday’s session at $ 62.24, well below the all-time high of $ 80.75 reached on February 25. At current levels, the social media network has a market cap of around $ 49.5. billion.