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The Dow Jones Industrial Average and the S&P 500 both increased by more than 1% last week.
Over the next few trading days, a flurry of new earnings reports will be released, kicking off the reporting season.
Let’s take a look at some of the most anticipated announcements from Apple (NASDAQ: AAPL), McDonald’s (NYSE: MCD), and eBay (NASDAQ: EBAY) from this list (NASDAQ: EBAY).
1. Holiday season sales projections from Apple.
The stakes for this week’s report are unlikely to be any higher than those for Apple’s fiscal fourth-quarter results, which will be released on Thursday. The iPhone maker updated its entire product lineup at the perfect time, given the surge in demand for premium consumer electronics.
Because of the favorable trading environment, most analysts expect Apple’s fourth-quarter revenue to increase by $20 billion, bringing total revenue to $85 billion.
Wall Street will be on the lookout for signs of new hardware product success, such as the iPhone 13, as well as Apple’s expanding service offerings, which generate significantly higher profits.
Apple’s holiday shopping forecast, which was released on Thursday, is worth paying attention to. The most recent demand trends, as well as any supply chain issues, will be included in this forecast.
Because CEO Tim Cook and his team are known for being conservative in their short-term forecasts, investors shouldn’t be concerned about Thursday’s forecasts.
2. Customer Traffic at McDonald’s
In its earnings report on Wednesday, McDonald’s will have to address some serious investor concerns. COVID- Despite the fast-food behemoth’s return to sales growth in the previous quarter, 19 issues in a number of key markets resurfaced in the third quarter.
If McDonald’s’ positive momentum has been shattered as a result of these outbreaks, we’ll find out this week. Keep an eye on it if customer traffic hasn’t returned to normal by the middle of 2021. McDonald’s’ growth prospects will be particularly bright if it can increase traffic while also expanding its mobile ordering channel.
3. The speed with which items are purchased on eBay.
eBay’s stock has already outperformed the market in 2021, but its dominance will be tested when the company reports earnings on Wednesday. The majority of the financial and growth metrics for the online marketplace have recently been trending upwards.
Its customer base and sales volume are now significantly larger than they were before the pandemic. eBay’s advertising and payment processing services are growing.
The good news is that these initiatives will allow eBay to provide more value to its sellers, allowing it to charge higher fees as a result of its success. In the second quarter, the company’s interest rate, or seller’s commission, reached a new high of more than 11% of sales.
In order to foster a deeper relationship with sellers and buyers, eBay is expected to improve the shopping experience this quarter.
Management plans to target new demand niches such as collectible sneakers and high-end timepieces.
In terms of financials, eBay’s limited-asset business model should once again produce industry-leading cash flows and operating margins. The company’s growth potential is limited by this method of selling through intermediaries, but it could generate cash flow and profitability far exceeding that of more traditional e-commerce retailers.