Everything You Need To Know This WeekMar 28, 2022
Today we're bringing you all the news you need to know for this week. This report contains news on the stock market, the economy and upcoming earnings announcements.
We've highlighted the most important topics in each section!
This week we're not covering the hottest IPO because there are only 3 and we're skipping on investing in all of them.
Monday, March 28th:
XPeng (XPEV) Earnings:
XPeng’s upcoming earnings call will give investors a better idea of the direction of the company over the next couple of months.
XPeng is expected to release strong revenue numbers but the revenue numbers could be overlooked because of losses that they are expected report as well.
The EV maker is constantly investing in new technology and supply chain issues will all contribute to the operating losses expected in their quarter four report.
This is a stock that we have been very bullish on given their investment in the future of the company.
The EV industry is very strong and XPeng is making moves to become a dominant player in the industry. See our analysis on them: here
Tuesday, March 29th:
Micron (MU) Earnings:
Heading into Micron’s earnings, Micron is looking strong after a decline in DRAM pricing. Previously, DRAM pricing was high due to supply chain issues and high demand. DRAM is a significant part of the cost of semiconductors so a reduction in pricing can have a positive effect for semiconductor companies.
Although the semiconductor industry often struggles in rising interest rate environments, the industry is on the rise after seeing so much success over the last few years. And therefore we see a lot of opportunities for growth for companies in the semiconductor industry.
Given the demand and Micron’s history of success, this is a company that has a bright future. Semiconductors are a necessity for the growth of technology and constant innovation in technology will only benefit Micron.
If you're looking for a high risk/high reward pick Micron is a good play going into earnings. But beware this comes with a ton of volatility.
Wednesday, March 30th:
BioNTech (BNTX) Earnings:
After a massive 2021, BioNTech is set to release earnings on Wednesday, March 30th. If you missed it, BioNTech had a successful 2021 after partnering with Pfizer to fight Covid-19 through the use of their vaccine.
But with the BioNTech stock suffering its worst losses since 2020 in the month of March, many investors are keeping a close eye on this upcoming report.
As COVID-19 "disappears", the direction of BioNTech is uncertain. There are still many countries overseas who have high COVID-19 rates but for most of the world, Covid-19 is not as much as a concern.
To keep sales running post pandemic, BioNTech is doing two things.
The first is that they are continuing to innovate as they are deep in the process of developing oncology drugs.
The second is that they are still trying to understand how high annual demand will be for their vaccine as the world keeps fighting against COVID.
Given the uncertain direction around the future of the company, we are nor bearish or bullish on BioNTech stock but are still sitting this one out.
Thursday, March 31st:
Walgreens (WBA) Earnings:
The second-largest drugstore operator, Walgreens, is releasing earnings on Thursday, March 31st. The popular drugstore benefited greatly from the pandemic as many of their products were in high demand.
There are concerns around retail pharmacies as move away from the pandemic. Prices on medicine are constantly rising presenting challenges for the consumers and the need for many of these medicines is decreasing.
Walgreens benefitted from being able to give out vaccine shots but again as we move out of the pandemic, revenue from the pandemic is decreasing.
Similar to BioNTech, there is a lot of uncertainty around the future of retail pharmacies.
We are currently not bullish or bearish on the stock but the upcoming earnings report will be something to keep a close eye on.
Friday, April 1st:
The biggest report of the week that inventors will be looking for is the upcoming jobs report. Unemployment rate is a good indicator of how the health of the economy.
The Fed uses new unemployment rates to help them when making decisions regarding monetary policy.
There is expected to be an increase of over 400,000 jobs with an unemployment rate of 3.7% in the upcoming jobs report on Friday.
The unemployment rate was 3.8% so this would be a slight decrease. This is a positive sign for the economy as a decrease in unemployment rate shows the economy is recovering well.
We forecast for this number to hold around the 3.7%-3.8% range but should it push significantly away from that in either direction, it'll likely scare investors.