Tesla, Netflix to report earnings this week
Yahoo Finance's Alex Semenova breaks down what to watch this week in markets, notably as Tesla and Netflix are among the companies reporting earnings results.
Video Transcript
- Well, let's take a look at what's going on this week. Netflix-- looking to build out an ad-supported tier with help from Microsoft as it struggles to hold on to subscribers. Barclays-- reiterating Tesla as an underweight. Those are just a couple of the things that we're keeping an eye on as is Yahoo Finance's Alexandra Semenova. So Alex, what are you watching for the week?
ALEX SEMENOVA: Yeah, guys, well, earnings season is obviously heating up this week with more than 70 companies expected to report results through Friday. And, of course, consensus estimates for profits last quarter have been downwardly revised. That's something that investors are prepared to see.
But what could result in some wild swings this week is, of course, what companies are saying about their outlooks and if we get any type of warnings from CEOs about how, you know, they're dealing with the challenges associated with rising interest rates and inflation.
We did see Snap, of course, kick off that trend recently, issuing that profit warning that sent the stock nosediving and sent a shock wave through markets. So traders could be in for some deja vu if we have any type of similar commentary this week.
And, of course, in the spotlight, most notable will be earnings from a big tech starting to trickle in. Netflix is set to report after the bell tomorrow. And things aren't looking so good, needless to say. We had UBS slashed its price target this morning.
Of course, the most closely watched metric will be that subscriber number. It's expected to report a loss of 2 million subscribers, really taking a big hit. They're already down 70% year-to-date. After that, Tesla will be in focus-- a difficult quarter for Tesla as well. It saw a lockdown of its Chinese factory. It did reopen, and we did see some of the sales rebound, but still a lot of challenges.
Elon Musk-- warning earlier this year that he sees the things are really bad for the economy. We could see some reflection of that in the performance in Twitter on Friday. And, obviously, the Twitter deal might be back in focus with both Tesla and Twitter reporting this week.
