Welcome to the BUX Breakdown. Here you’ll find everything you need to know about the stock market for the week ahead, in three minutes flat.
So what can we expect between May 24th and May 28th? We’re keeping our eye on earnings figures from a handful of cloud companies, some news in the biotech space, as well as inflation data. Here we go 👇
The growing cloud
All eyes are on cloud stocks this week with several big US cloud firms reporting their quarterly earnings.
First up, Snowflake will unveil its first-quarter figures on Wednesday, May 26th. Snowflake’s phenomenal IPO back in September 2020 was the largest software IPO ever, raising $3.4 billion on its first day of trading.
For the first quarter, investors are hoping the company is still on track to hit its goal of reaching $1 billion in sales by 2022.
On the same day, we’ll get results from US cloud application company Workday. Shares of the company have already gained 203% in just five years, and growth is expected to be strong again this quarter.
Veeva Systems is up next Thursday, May 27th. Analysts are expecting an 18.18% rise in earnings (year-over-year) to hit $0.78 per share. Revenue is expected to increase by 21.45% from last quarter.
Biotech to watch this week: Sanofi
We recently heard that a new Covid-19 vaccine from Sanofi, a French laboratory, had successfully passed its phase II trials. The vaccine is 95% effective, making it more effective than its competitor Johnson & Johnson.
So keep your eye on Sanofi this week as we’ll be expecting more announcements about this. The stock could benefit greatly from the spotlight!
Will inflationary fears consume the market?
There’s been one word on everyone’s lips in the US and Europe over the last several months: inflation. European indices like the CAC40 and the DAX have recently shown signs of weakness due to this phenomenon of rising consumer prices (learn more about inflation in this article).
An inflationary period is caused by an increase in production costs (making ‘things’ more expensive to buy). And an overall decline in household consumption. The US Federal Reserve said it will be watching this closely over the coming weeks and months and may step in to moderate.
The latest inflation rates will be published in Belgium and France on Friday 28th May. If there’s another sharp rise, European indices could begin to fall again.
New French stocks in the BUX Zero app
You can now invest in Laurent-Perrier – the famous champagne company, Showroomprive – an online event sales site, Luc Besson’s Eurocorp production company, as well as NRJ Group, Europcar, Pierre & Vacances, and more.
We’re always adding new assets to the app, so stay tuned for more!
Economic calendar and earnings results
Tuesday – Final GDP in Germany, quarterly figures from Nordstrom.
Thursday – Unemployment rate in France and the United States, Consumer Confidence Index in Germany, Business Index in the Netherlands, estimated GDP growth in the United States, quarterly figures from Salesforce, Gap, Costco, and Veeva Systems.
Friday – Economic sentiment in the eurozone, inflation rate in Belgium and France.
We’ll see you again next week for another edition of the BUX Breakdown. In the meantime, have a great week on the markets!
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