Bearing in mind that some of the biggest U.S. companies will be sharing their quarterly earnings this week, investor interest will likely be majorly on corporate America and the financial stability of its most high profile corporations.
During the upcoming five-day time-frame, around a third of S&P 500 companies are aimed to post their most recent data along with their outlook predictions for the rest of the year, including such tech darlings as Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and industrial names, such as Boeing (NYSE:BA) and Caterpillar (NYSE:CAT).
Approximately 87% of S&P 500 companies that shared results so far this season have surpassed Wall Street expectations. Following some of the recent studies, investors are celebrating a rapid economic rebound and fueling corporate America despite the threat of growing inflation.
During this important week for the Q2 earnings season, we will be watching major tech mega caps whose earnings releases would help understand whether they are still benefiting from the pandemic-fueled demand growth that pushed some companies shares to record high prices:
Electric vehicle giant Tesla (NASDAQ:TSLA) is set to share its second quarter earnings on Monday, July 26th after the market closes. Experts are predicting $0.94 a share profit on sales of $11.53 billion.
With its shares still experiencing a bearish cycle so far this year, the Palo Alto, California-headquartered EV manufacturer is seeing growing competitive threats from traditional automakers, signs of a potential sales slowdown in China, and an ongoing semiconductor shortage. TSLA shares ended Friday’ session at $643.38, below around 8% for the year.
The short-term outlook for Tesla has improved after the company stated last month that it produced more cars in Q2 than experts predicted. That proves the EV manufacturer has been successfully overcoming supply-chain obstacles which are affecting traditional automakers.
The company’s sales forecast for the remainder of 2021, and the demand situation in China, will be important details that investors will be keen to be updated on.