The stock market is about to end the month on a positive note. Corporate profits are on the rise and we’re heading into the historically strong Christmas period. This week, we’re bringing you news from a handful of tech companies that could have a big impact on the industry as a whole, and your portfolio.
Prepare for Cyber Monday
Black Friday is behind us, and now it’s time for Cyber Monday – the day of deals for electronics, multimedia and video games! This big event could have an impact on the market. Last year, for example, stocks in the consumer goods sector fell 1.84% on Cyber Monday. Investors were disappointed by the early sales reports and it had an instant impact on stock prices.
Heading for Silicon Valley
A few US tech companies will release their quarterly earnings this week. So far, we’ve covered the FAANG stocks and taken a trip through the new metaverse. Now it’s the turn of cloud software and data management stocks. These companies have high growth potential, even if they’re not all fully profitable yet.
On Tuesday, November 30th, we’ll get quarterly results from Salesforce. The company specialises in business management software, and is expected to report earnings-per-share (EPS) of $0.92. That would be a negative growth rate of 47.1% year-on-year. Analysts, however, remain quite optimistic about Salesforce, which recently acquired Slack. The transaction could significantly increase the company’s profits in the future. Investment banks JP Morgan Chase and Morgan Stanley just increased their price targets on Salesforce, with a recommendation to buy the stock.
The next day, Wednesday, December 1st, we’ll get figures from cloud warehouse company Snowflake, which was created by French expatriates in the US, and whose share price rose by 17% in October. On the same day, we’ll also hear from Splunk, a data management business, whose last quarter showed a decent growth of 19% year-on-year.
Finally, it will be Asana’s turn to present its figures on Thursday, December 2nd. The project-management company recently had to revise its earnings estimates down for the current fiscal year. In contrast, the share price posted a performance of 345% while tech stocks gained 29% on average. The long-term outlook therefore remains very positive for Asana!
Economic and earnings calendar
Monday – Economic sentiment and index of investor confidence in the euro zone (November). Inflation rate in Germany (November). Cyber Monday.
Tuesday – Unemployment rate in Germany (October). Inflation rate (November) in France and in the euro zone. GDP growth in France (Q3). Quarterly figures from Salesforce, NetApp, Hewlett Packard Enterprise, Hello Group, Adler.
Thursday – General meeting of the ECB. Unemployment rate in the euro zone and the United States (November). Quarterly figures from Asana, Docusign, Deutsche Beteiligungs, Manutan International, Pierre & Vacances.
Friday – Final PMI for services in Germany, France, the euro zone and the United States (November). Quarterly figures from Aurubis.
We’ll be back next week with another edition of the BUX Breakdown. In the meantime, have a great week on the markets!
This 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.