April 18-22 | Tesla, Netflix & More: Don’t Miss Any Opportunities This Week!

It’s a big week for investors in the eurozone, with a packed schedule of economic data ahead. We’ll get figures on the budget, debt and inflation levels. On top of that, earnings season is in full swing and investors will be hoping for some good news after a bearish month of March.

Can Tesla accelerate this quarter?

Elon Musk’s company continues to make headlines with record deliveries, new models, soaring prices for the Model 3, expansion in Europe… not to mention Elon moonlighting as the newest shareholder at Twitter! Tesla’s results came in slightly below expectations last quarter, mostly due to the closure of Shanghai’s gigafactory. But analysts are optimistic about the upcoming report on Wednesday, April 20th.

Tesla is expected to report earnings of $2.12 per share for the current quarter, which would be an increase of 128% year-over-year. Revenue is expected to come in around $17.3 billion, up 65% compared to last year.

One more thing to watch. Tesla might release the famous Cyber Truck this year. Lots of Tesla fans and investors are eagerly awaiting this one.

Slow motion growth at Netflix

Since the end of most lockdowns, Netflix has struggled to regain its former health. As always, there are three big indicators to watch when Netflix reports its earnings on Tuesday, April 19th.

  • Subscribers: Analysts are expecting another 2.5 million paid subscribers this quarter, a historically low number for Netflix.
  • Competition: Although Netflix is the breakthrough industry leader, it is now surrounded by competition. The company has admitted that competition from Disney+ and Amazon Prime will have an impact on profit margins.
  • Future forecasts: Thankfully, filming has resumed so Netflix can get back to producing content on a large scale. Some analysts think that an abundance of new films and series could boost the company in the second and third quarters. On top of that, Netflix is working on a new pricing model that could be a game-changer. Specifically, they are exploring ways to limit the way users share accounts and passwords.

Overall, analysts are forecasting earnings per share of $2.90 and revenue of $7.93 billion.

Verizon vs. AT&T

Let’s stay in the United States, where two giant telecoms companies are going head to head this week. Verizon and AT&T are both staking their future on 5G, although network speeds at Verizon are much higher than competitors. Verizon is also leading the pack on prepaid cards and installing fiber networks in residential areas. Financially, Verizon and AT&T generally have good dividend yields, which can be an attractive investment strategy.

AT&T publishes its quarterly figures this Thursday, April 21. The company is expected to post earnings of $0.79 per share, down 8.1% year-on-year. In addition, the stock recently got a boost after spinning off Warner Media.

Verizon will report the next day, Friday, April 22. The company is forecasting revenue growth of 9-10% for its wireless service. Overall, organic service growth – which is the growth of the company’s own businesses, not through acquisitions or investments – is expected to come in around 3%.

Economic and earnings calendar

Monday – Trade balance in Spain (February). Quarterly figures from Bank of America.

Tuesday –  US API Crude Oil Inventory Change (Weekly). Quarterly results from L’Oréal, Johnson & Johnson, Netflix, IBM, Casino.

Wednesday – Trade balance and industrial production in the euro zone (February). US Federal Reserve (“Beige Book”) report. Quarterly results from Tesla, Procter & Gamble, ASML, Heineken, Danone, Carrefour, Just Eat Takeaway.

Thursday – Unemployment rate in the Netherlands (March). Business climate in France (April). Final inflation rate in the euro zone (March). US unemployment rate (April). Quarterly results from Philip Morris, AT&T, Kering, Relx, Snap.

Friday – Manufacturing, services and composite PMI in France, Germany and euro zone (April). Euro zone budget and debt in 2021. Quarterly results from Verizon, Essilor Luxottica, SAP, Vinci, Renault.

Sunday – Second round of presidential elections in France.

We’ll be back next week for another edition of the BUX Breakdown. In the meantime, have a great week on the markets!

The BUX Breakdown was written by Clémentine Pougnet.

All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.