Can Q3 earnings set Facebook Inc (NASDAQ:FB) stock on the path of a new rally?
Shares of Mark Zuckerberg led Facebook Inc (NASDAQ:FB) have picked up some momentum ahead of the social media company's Q3 earnings gaining nearly 6% over the past three trading sessions. The Menlo Park, California-based company is scheduled to report its Q3 earnings today after the closing bell. And, the sentiment is little overly bullish on account of overall bullish sentiment around tech stocks. The question now is, whether the latest quarter earnings would set FB stock for big post-earnings similar to the likes of tech giants Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) last week. With Google parent Alphabet (NASDAQ:GOOGL) also delivering another strong performance, the expectations from Facebook earnings have also gone up.
Coming to Wall Street estimates, The average analyst estimates for the tech behemoth's fiscal third quarter are a non-GAAP EPS of $1.28 per share on revenue of $9.84 billion. These numbers imply a 18% YoY EPS growth, and 40% YoY revenue growth. Facebook has a strong history of beating earnings estimates. However, the recent controversies which the social media giant was embroiled had hurt the sentiment around FB stock. There are still apprehensions about FB stock on account of the Russia ad controversy. Having said all this, for many investors the question now is, should one buy the Facebook stock ahead of earnings? For a detailed preview of the FB stock's Q3 earnings and more insights about how to play Facebook stock ahead of earnings, please go through our Facebook earnings preview.
Can Q3 earnings give some impetus to running out of steam Tesla Inc (NASDAQ:TSLA) stock?
Palo-Alto, California based electric carmaker Tesla Inc (NASDAQ:TSLA) is scheduled to report its third quarter earnings today, after the market close. Shares of the Elon Musk-led company have gone almost nowhere since the last quarter earnings and in fact, Tesla stock has corrected more than 11% till yesterday over the past two weeks, only to see a slight bounce in the last trading session. Investor sentiment is not as ultra bullish as it has been in the earlier part of the year as valuation concerns are catching up. All Tesla bulls could be betting on the company's Q3 earnings to help TSLA stock resume its uptrend. However, Model 3 narrative holds the key for Tesla stock in the coming days.
The Wall Street consensus expects the company to report a non-GAAP loss per share of $2.3 per share and a revenue of $2.94 billion. The analyst estimates imply a healthy 27.8% YoY top-line growth by but a drastic drop in earnings of more than 400% YoY as the company posted an EPS of 71 cents per share in the year-ago same quarter. If the company continues the same way then there are valid concerns that Tesla could soon run out of cash as the losses have almost doubled from the previous quarter. Tesla stock is now majorly a bet on the Model 3 success. Any negative development on the Model 3 production front in the earnings call could be really fatal for Tesla stock. Tesla stock is a high-risk high reward bet going into earnings. Further, the earnings whisper number of loss per share of $2.54 is not encouraging as it suggests a big earnings miss could be on the cards. The sentiment ahead of earnings is also that bullish, investors would do well to avoid TSLA stock ahead of earnings.
Can Q4 Earnings lift QUALCOMM, Inc. (NASDAQ:QCOM) stock?
The third major earnings for the day is smartphone chip giant QUALCOMM, Inc. (NASDAQ:QCOM) which will report its Q4 earnings today after the market close. Shares of Qualcomm crashed by nearly 7% as reports of Cupertino tech giant Apple (NASDAQ:AAPL) working on next model of iPhones without the company's components emerged. Already, the San Diego, California based chipmaker is engaged in numerous legal battles with Apple, this news had just made matters worse for QCOM stock. The Q3 earnings suddenly almost taken a back seat when it comes to Qualcomm stock's fortune near-term with now all eyes on the development with Apple, as it still happens to be one of the biggest clients of the company. However, Qualcomm shareholders would be hoping that company's Q4 earnings would help the recovery in QCOM stock. Wall Street expects the company to report a revenue of $5.8 billion, translating to a 6% YoY decline. Coming to earnings, the Street's consensus estimate for EPS is a non-GAAP earnings of 81 cents per share, worsening from the year-ago quarter EPS of $1.28, a massive 47 cents decline. Now, Q4 earnings could be the lifeline to stem the rot in QCOM stock.
For a detailed preview of the Qualcomm stock's Q4 earnings, please go through our QCOM earnings preview.
Some other major earnings today are of action camera maker GoPro (NASDAQ:GPRO) and smartwatch company Fitbit (NYSE:FIT). Both companies will report earnings after the closing bell. GoPro is expected to report a non-GAAP earnings per share of 2 cents per share on revenue of $313.1 million. On the other hand, analysts expect Fitbit to deliver a loss per share of 4 cents per share and revenue of $391.78 million.
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