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What investors can expect from Twitter, Uber and Disney earnings

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Yahoo Finance's Emily McCormick joined Yahoo Finance Live to break down what investors can expect from Twitter, Uber, Lyft, Disney and others' earnings reports later this week.

Video Transcript

SEANA SMITH: We want to talk about earnings because that's, again, of course, a big story here. This week, we have some big names on top of Disney, Twitter, Uber, Lyft among the big names that we're going to be hearing from Emily McCormick is standing by for what we can expect. And Emily, I guess let's just start with Lyft and Uber because we're getting those results. Lyft's tomorrow, and Uber's set for Wednesday.

EMILY MCCORMICK: That's right, Seana. And Lyft and Uber are both in that category of travel stocks that really have been negatively impacted by the pandemic and the depression to travel that we've seen results from that. And while sales are still likely to be down sharply in the fourth quarter and while both companies are still very likely, of course, to continue posting losses, the focus for both of these reports is really going to be on that forward guidance.

Because if we remember last quarter, both Uber and Lyft actually doubled down on their target of hitting adjusted EBITDA profitability by the end of 2021. And Lyft CEO Logan Green even said that the company could achieve that target, even if ride sharing and ride hailing demand remains below levels from 2019, when they'd actually first issued that end of year 2021 guidance for hitting profitability. So that's going to be one thing to really watch here going forward for Uber and Lyft, whether they're able to hit those profit targets by year end.

And then when it comes to Uber, one of the dynamics that's going to be really interesting to watch is how the food delivery business, and now the drink delivery business with Uber's acquisition of Drizly that was just announced earlier this month, plays into the overall strategy here for this company.

Because we know the past two quarters, we've actually seen that gross bookings for the food delivery side of Uber's business has far overtaken and outweighed the incremental damage to the business we've seen from ride hailing. So that, again, is going to be an important dynamic to watch play out in Wednesday's results for Uber and Tuesday's for Lyft's.

ADAM SHAPIRO: Emily, we're also keeping an eye on Disney and Twitter. And I think a lot of people are wondering about a post-Trump tweet world for Twitter. But where do you want to start? Because Disney's doing-- like, it's gangbusters.

EMILY MCCORMICK: Oh, that's right, Adam. And we did actually see Disney stock hit a record high earlier today in anticipation of those earnings results, which aren't even coming out until Thursday. And when it comes to Disney, the focus for that report is really going to be on Disney Plus.

We know from Disney's investor day earlier on in December that they'd had more than 86 million subscribers to Disney Plus in just over a year of launching the platform. It's still trailing Netflix, which has more than 200 million global subscribers. But again, Disney really getting some traction here and growing much faster than even they'd anticipated.

And then when we take a look here at Twitter, in addition to any commentary around, of course, the former President Donald Trump Twitter ban, one of the things that's going to be important to watch is whether we get any guidance around a subscription product. That's something that Bloomberg actually had reported could be in the pipeline and that Twitter is actually working on now. So anything that could augment their advertising revenue stream, it could be accretive here for the stock and another thing to watch in that report on Tuesday.

SEANA SMITH: All right, Emily McCormick, big week coming up. Thanks so much.