Twitter (NYSE:TWTR): Twitter is in a bad way. After the stock received a bump earlier in the month due to acquisition rumors, shares ended up cratering two weeks ago when every potential suitor withdrew their bid.
Its widely believed that Twitter is overvalued at a $15B+ market cap given its dwindling user base and spotty financials. Monthly active users (MAUs) have been stagnant for several quarters now, only coming in at 313 million in the second quarter, a measly 1% increase QoQ and 3% YoY. The company is not even in the top 3 when it comes to DAU and MAU; Facebook (NASDAQ:FB), Instagram and Snapchat are all ahead of Twitter.
Twitter is trying to offset lagging user growth by capitalizing on the popularity of online video, a strategy already used by Facebook, You Tube, Instagram and others. Twitter is also actively trying to re-engage its user base through strategic content partnerships, specifically with live streaming video. A contract with the NFL will stream every Thursday Night Football game on Twitter along with normal CBS/NBC programming. Its first few weeks this has been extremely successful in re-engaging and adding new users.
Ford (NYSE:F): Normally a strong earnings report from General Motors (NYSE:GM) is a precursor of good things for to come for Ford, but this quarter is looking like it will play out differently. Ford recently cut its profit guidance after announcing it would take a $640 million charge to expand its recall on faulty door latches. The downgrades estimated pre tax profit of about $10.8 billion to fall to $10.2 billion. Meanwhile, Ford is trimming production in North American markets amid concerns of cooling demand following six years of growth. In the second quarter, U.S. sales dropped 20% on the back of a trend away from sedans and toward SUVs. Beyond the U.S., sales are actually starting to gain traction and may offset some of the domestic losses. Europe’s profitable trend is expected to continue throughout the third quarter while China sales were also reportedly strong after years of sluggish numbers. Exposure to international markets makes Ford prone to several macroeconomic headwinds including FX volatility and Brexit fallout. Ford has a wide spread presence in European markets that will almost certainly dent performance, if it hasn’t done so already.
Celgene (NASDAQ:CELG): This week we receive a parade of biotech earnings, including Celgene which reports later this morning. Shares of of the biotech company have struggled leading up to the print, but some experts believe this is still the best bet in the sector. Celgene’s pipeline is one of the largest and potentially most lucrative in biotech which includes 50 potential product approvals in over 100 pending by 2025. This kind of potential lays the framework for strong top line growth. In the meantime, this quarter is forecasted to record a 21% increase on the bottom line and 22% on the top, showing steady improvements from the previous two quarters.
UPS (NYSE:UPS): Expectations have edged down since UPS’s most recent report thanks to currency headwinds and the ongoing migration to e-commerce platforms. With operations all over the world, these continual problems are expected to pressure performance. Analysts are forecasting a 5% increase on the bottom line along with a 3% jump in sales, significantly slower than previous quarters. Stiff competition from FedEx (NYSE:FDX) and potentially Amazon (NASDAQ:AMZN) if it launches its own courier service, are also expected to adversely impact results. On a positive note, the recent influx of new technologies have helped optimize routes and improve operations. This will certainly provide some much needed support to the bottom line.
Bristol Myers Squibb (NYSE:BMY): Pharmaceuticals has been one of the most beaten down sectors this year but a couple of beats this earnings season might be the start to reversing those misfortunes. BMY is the next large pharma company to report with expectations edging higher on these new industry trends. Its current catalogue of products are all performing well, driven by strong demand worldwide. They include treatments for cancer, rheumatoid arthritis, blood thinners, HIV and HCV. Investors are expected to focus on the expansion of these labels along with updates on the pipeline and any business development activities.