Federal Reserve Chair Janet Yellen will testify in front of Congress at 10am Eastern today. Yellen will give her outlook on the health of the economy to the Joint Economic Committee. Investors will be interested to see what she has to say about the future of interest rates after some mixed signals from the economy. First quarter economic growth was weaker than expected, but April payrolls figures surprised on the upside.
One of the stocks we’re watching is Groupon, (GRPN) which is down sharply this morning after the company issued disappointing guidance for the current quarter. Results for last quarter reported after the close yesterday actually beat estimates. The company reported a loss of a penny a share and revenue of $758 million, ahead of Wall Street estimates. But the company said its earnings and revenue for the current quarter will be below analysts’ estimates. Earlier this year, Groupon launched a wedding shop that features rings, gowns and tuxes at steep discounts. It also launched a bulk-order category to appeal to Sam's Club and Costco (COST) shoppers.
We’re also watching shares of Tesla (TSLA) ahead of the electric car maker’s first-quarter earnings report after the close. Analysts have been cutting their estimates recently and are now looking for the company's revenue to rise 24% from a year ago to about $700 million dollars and earnings of $0.10 cents a share.
Chinese e-commerce site Alibaba finally filed for its IPO yesterday. The company said it plans to raise $1 billion. It could raise more than Facebook’s IPO which brought in $16.2 billion in 2012, making it one of the largest IPOs ever. Why is this IPO such a big deal? In its filing, Alibaba, in which Yahoo owns a 22.6% stake, said Chinese shoppers spent $248 billion on the company’s three retail sites last year. Alibaba’s shopping sites Taobao and Tmall make up 80% of all online shopping transactions in China. Alibaba didn’t specify what exchange it would list on, its offering price, or its stock symbol.
In our poll today, we want to know what you think about the stock. Would you buy shares of Alibaba? Cast your vote and post your comments below.