The Week Ahead: Apple, Facebook, and Tesla to Report Earnings
The week ahead is stacked with big names across every sector.
Tuesday is expected to be the busiest day in the week ahead with reports from several top companies, including Johnson & Johnson (JNJ), 3M (MMM), Starbucks (SBUX), Advanced Micro Devices (AMD), General Electric (GM), Verizon (VZ), and Microsoft (MSFT).
Apple is one of the companies that has benefited from the work-from-home and learn-from-home trends. We maintain a stronger near-term outlook for the Mac and iPad segments because of these trends, but we do anticipate that growth trends could be unsustainable in the new year. iPhone sales were down due to the delay of the iPhone 12 launch, and we expect revenue for fiscal 2021 will be up in the low teens.
Following the Jan. 6 riot at the U.S. Capitol, social media companies eliminated Donald Trump’s personal accounts. We think this will only have a slight impact on Facebook, and there won’t be any major changes to Section 230 of the Communications Decency Act. This increase in content moderation may lead to more brand advertisers viewing the wide-moat social network as a safer platform to market on.
Tesla dominates the electric vehicle industry, but we do not see it having mass-market volume this decade. The vertically integrated sustainable energy company’s prices are too high for every consumer who wants an electric vehicle. The Model X crossover released in late 2015 starts at about $80,000, the Model S sedan's starting price is $69,420, the Model 3 sedan starts at $37,990, and the Model Y crossover starts at about $50,000. Tesla’s goal is to make the electric vehicles affordable, which will cost billions a year in capital spending and research and development.
AT&T (T) and Boeing (BA) are also expected to report earnings on Wednesday. On our list for Thursday, we anticipate reports from McDonald’s (MCD), Altria Group (MO), T Rowe Price (TROW), and Visa (V). To close the busy week, Chevron (CVX) is expected to report on Friday.
Carole Hodorowicz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.