Stock Futures Edge Lower Ahead of Inflation Data
The U.S. stock futures are trading lower in pre-market trading after another record-setting day for Wall Street. This week is another week packed with corporate earnings to watch alongside the inflation data set to be announced today. The S&P 500 and Dow are also near their all-time highs on the back of the U.S. Senate passage of a major infrastructure bill.
“Realistically, what an infrastructure bill is going to mean is additional spending into the economy. Just like the stimulus has helped the economy for the last year, that’s more money that can be going into the economy and helping businesses get through the slump they have been in previously … Generally speaking, the economy looks to be on good footing, and this is only going to be an added benefit on top of that.” –Courtney Dominguez, Senior Wealth Advisor for Payne Capital Management
Despite the COVID-19 case numbers rising in the U.S. and around the world, the stock market continues to power higher as of late. It may be due to the widespread vaccination that has helped limit the delta variant’s impact. Or it may be partly to do with the infrastructure bill. And these developments continue to present opportunities in the stock market today. Dow futures are trading in the positive territory, moving 0.09% higher as of 6:44 a.m. ET. Meanwhile, S&P and Nasdaq futures are declining by 0.06% and 0.20% respectively.
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Nio Earnings Are In The Spotlight Today
Chinese electric vehicle maker Nio (NYSE: NIO) is set to report earnings today after the market closes. Investors may not have been excited by Nio’s muted price action lately. While the struggles afflict EV stocks across the board, could NIO stock be any different when it reports earnings today? Before we dive deeper, it is also meaningful to see what the analysts are expecting for the second quarter.
According to Thomson Reuters, analysts’ consensus points to a loss of $0.11 per Nio ADR on revenue of $1.28 billion. However, Edison Yu of Deutsche Bank, who has covered Nio stock closely, thinks it could do better. Specifically, Yu and his team expect Nio to report a loss of about $0.07 on revenue of $1.32 billion.
It will be important to look at how Nio progresses toward its goal of having 4,000 battery swapping stations worldwide by 2025. And as the Chinese government has announced national battery swap safety standards, the company’s efforts to increase its battery-station footprint is music to investors’ ears. Investors will also be watching Nio’s guidance for the rest of 2021 closely. And that guidance may arguably have a stronger impact on NIO stock. Nio’s report could also sway investors’ expectations on fellow Chinese EV players Li Auto (NASDAQ: LI) and Xpeng (NYSE: XPEV), which have yet to report their results.
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FuboTV Delivered Record Revenue, FUBO Stock Is Flying
FuboTV (NYSE: FUBO), the leading sports-first live TV streaming platform, reported stellar financial performance for its second quarter ended June 30, 2021. The company also raised its guidance for the full year. Revenue came in 196% higher year-over-year to $130.9 million. Meanwhile, total paid subscribers jumped 138% year-over-year to 681,721, including 91,291 net subscriber additions in the quarter.
The company now forecasts 2021 revenue of $560 million to $570 million, representing 116% growth year-over-year at the midpoint. FuboTV expects to end the year with 910,000 to 920,000 subscribers. Last month, the company also announced a market access agreement with The Cordish Companies for its forthcoming mobile Fubo Sportsbook in Pennsylvania. The Cordish Companies is the owner and operator of the Live! Casino franchise and Fubo, through Fubo Gaming, will provide state-wide mobile access for both sports betting and iGaming.
“Our second-quarter results showcase the continued momentum in our business, with consumers choosing fuboTV over more expensive legacy pay TV services due to our innovative product experience and customer-friendly approach at an affordable price.“- Edgar Bronfman Jr. Executive Chairman of fuboTV
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Upstart Stock Surges After Strong Guidance & Solid Earnings Beat
Upstart (NASDAQ: UPST), which uses artificial intelligence (AI) to evaluate the creditworthiness of loan applicants, reported a blowout second quarter yesterday. Total revenue came in 1,018% higher from the second quarter of 2020. Meanwhile, transaction volume came in at 286,864, totaling $2.8 billion across its platform in the second quarter. This represents a 1,605% increase from the same quarter of the prior year.
“Our second-quarter results continue to show why Upstart has the potential to be among the world’s largest and most impactful FinTechs,” said Dave Girouard, CEO of Upstart. “Lending is the center beam of revenue and profits in financial services and artificial intelligence may be the most transformational change to come to this industry in its 5,000-year history.“
Recall that Upstart expanded into car loans earlier this year. With U.S. consumers owing over $1.3 trillion on their vehicles, Upstart has quite a growth opportunity ahead of it. Given that the company has achieved profitability, and scored an impressive quarterly performance. It seems to me that Upstart is just getting started. Perhaps, the business could continue to achieve strong performance in the long run. Investors should keep an eye on revenue growth in the coming quarters. Should the company continue to deliver at this pace, UPST stock could potentially be a good deal at its current valuation.
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More Earnings On The Way
The earnings season can be overwhelming. Especially when you have a long list of companies delivering lots of numbers. And oftentimes it’s not easy to tell what’s really happening in the business fundamentally. However, the great news is, most of the earnings reported so far have topped estimates. This shows us that there will always be a silver lining in a heavily battered economic environment. Some of the notable names reporting prior to the opening bell include Wendy’s (NASDAQ: WEN), Wix.com (NASDAQ: WIX), and Canada Goose (NYSE: GOOS).
There are also major companies reporting earnings after the closing bell today. They include Nio, eBay (NASDAQ: EBAY), Sonos (NASDAQ: SONO), Blink Charging (NASDAQ: BLNK), and Coupang (NYSE: CPNG). So, whether it is digesting the new infrastructure bill, waiting for the inflation data or simply following the earnings reports, there should be enough to keep you busy.
