This week, we’re keeping our eye on work-from-home tech stocks, as well as the cannabis industry and oil data.
Note, the US and UK markets will be closed on Monday, May 31st due to Memorial Day and Spring Bank Holiday.
The last 12 months have truly been the year of teleworking, with companies embracing software for collaborative communication and project management. No surprise, these stocks have seen explosive growth with an exponential increase in users.
On Tuesday, June 1st, we’ll get earnings figures from Zoom, the essential tool for video meetings. Zoom’s revenue increased by 326% during 2020, and the momentum is expected to continue. Analysts predict an estimated turnover of $900 million with earnings-per-share of about $1.
Industry to watch: cannabis
This new but prosperous industry is in the spotlight this week!
First, we’ll get quarterly results from Canopy Growth, a Canadian company which produces and distributes cannabis for medical use. Released on Tuesday, June 1st, we’re expecting a growth of 56.3% year-over-year for the medical marijuana business, with revenue coming in at $125.8 million. On top of that, Canopy recently acquired a US weed company, hoping to strengthen its position in the recreational marijuana market.
Want to know more about the jargon of “cannabiz” and the challenges of the sector, take a look at this article.
The oil comeback?
The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) will meet virtually on Tuesday, June 1st, for their 17th ministerial meeting. What’s on the agenda? First, a discussion about production volume for the summer period and probably a telling-off for those countries that often overproduce, such as Russia, Iraq or Sudan. For now, OPEC is confident about the recovering demand for black gold, helped by lifting of lockdowns around the world.
Economic calendar and earnings
Monday – Inflation rate in Spain, Italy and Germany. Final GDP in Belgium.
Tuesday – Unemployment rate in Germany, Italy and the euro zone, inflation rate in the euro zone, PMI index (manufacturing) in France and the United States. Quarterly figures from Canopy Growth and Zoom.
Wednesday – Budget balance in France. Oil inventory in the United States. Quarterly figures from Splunk.
Friday – Unemployment rate in the United States.
We’ll be back next week with another roundup of the market action. In the meantime, have a great week on the markets!
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