It may be the middle of winter, but “hot” will be the operative word next week on Wall Street-- as in hot cars and hot movies.
First, the cars. Tesla (TSLA) is reporting fourth quarter earnings on Wednesday, and analysts are looking for the electric carmaker to top $1 billion in revenue for the first time ever.
Elon Musk’s company has been a hot ticket on Wall Street, with the stock up tenfold since it began trading in the summer of 2010. But it’s hit a speed bump lately, losing more than 20% since its all-time high hit back in September. And Yahoo Finance Columnist Rick Newman warns there may be some more potholes ahead.
“Tesla has two problems,” he points out. “Gas prices are falling, so fewer people are interested in electric cars, and there’s a lot of competition coming. Is that going to affect their sales? I’m going to say it is.”
And while Tesla may be cooling down now, Yahoo Finance’s Jeff Macke says the world’s two biggest soft-drink makers have been icy cold for a long time now. Coca-Cola (KO) and PepsiCo (PEP) are also reporting results this week, and Macke notes these companies haven’t exactly been on fire recently.
“Pepsi has taken the steel toed boots to Coke in the stock market, but neither of these companies is growing,” he says. “On a fundamental basis Pepsi is, boy, we’re growing along the lines of 3 or 4% while you guys (Coca-Cola) aren’t growing at all.”
Meantime, the hottest movie ticket next week could very well be Fifty Shades of Grey, based on E.L. James’ best-selling erotic romantic novel of the same name. Yahoo Finance’s Jennifer Rogers notes the numbers could be monster for a mid-winter release.
“Everybody is going to be talking about it,” she says. “It’s looking for a $60 million open.”
The movie is being distributed by Comcast’s (CMCSA) Universal Pictures, and Rogers explains there’s no question who will be standing in line at the theaters.
“Ladies are going wild for it,” she reports. “Apparently 86% of the retweets are coming from ladies.”
But leave it to Macke to put it in a Wall Street perspective.
“It’s like a startup dirty movie,” he suggests. “It’s a gateway smut.”
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