Markets could lose some momentum in the coming week, after investors sold off Amazon (NASDAQ:AMZN) on Friday in response to the e-commerce behemoth releasing earnings on Thursday, after the close, that disappointed expectations. That also weighed on other tech players.
Amazon had its worst day on the market in more than a year on the final day of last week's trade, falling 7.6% and wiping out about $75 billion in market value after the e-retailer said revenue growth slowed in the second quarter to 27% from 41% a year earlier. The disappointing report also sent shares of smaller internet sales players tumbling. Wayfair (NYSE:W) and Etsy (NASDAQ:ETSY) both dropped almost 8%, while eBay (NASDAQ:EBAY) fell 7%.
With investor focus on e-commerce as well as peer tech sector equities, here are three stocks to keep an eye on during the upcoming week:
1. Uber Technologies
The world’s largest ride-hailing company, Uber Technologies (NYSE:UBER), is scheduled to report Q2 earnings on Wednesday, Aug. 4 after the market close. According to analyst consensus forecasts, Uber will announce a loss of $0.54 a share on sales of $3.74 billion.
Uber shares have been under pressure this year, falling more than 12%, on concerns that a shortage of drivers will hamper growth as the economy reopens and people restart booking rides. Uber shares closed on Friday at $43.46, after falling about 3% for the day.
The San Francisco-based ride services platform told investors in May that spending on recruiting drivers will impact earnings in the second quarter, creating doubts about the company’s goal to reach profitability by the end of the year.
Despite worker shortages, Chief Executive Officer Dara Khosrowshahi is confident that his company will return a quarterly adjusted profit by the end of the year. First-quarter results had showed otherwise strong growth of 24% in gross bookings, driven by Uber's food delivery business.
2. CVS Health
CVS Health (NYSE:CVS) will also report its second-quarter earnings on Wednesday before the market open. Analysts on average are expecting $2.06 a share profit on sales of $70.16 billion.
The pharmacy giant raised its full-year forecast in May as COVID-19 vaccines and testing help boost earnings and offset a weak cold and flu season. With about 9,900 locations nationwide, CVS had administered some 23 million virus tests, including 9 million in the first quarter.
Vaccines and testing, on the other hand, are also attracting foot traffic. About 9% of new customers who received a test through CVS also filled a new prescription with the pharmacy.
But the pandemic-related boom in sales may not last forever as the U.S. is already struggling to increase the vaccination rate in its population after the initial boost. CVS shares closed on Friday at $82.36 after rising 20% this year.
3. Beyond Meat
The El Segundo, CA-based maker of plant-based burgers, meatballs, sausages and other vegetarian 'meat' products, Beyond Meat (NASDAQ:BYND) reports second-quarter earnings after the close on Thursday, Aug. 5. Analysts on average expect the company to report $141 million in quarterly sales while posting $0.22 a share loss.
The food provider has suffered during the pandemic due to restaurant, stadium, and campus closures that account for a significant portion of its business. While Beyond has seen demand improvement in grocery sales and has been rolling out more products recently, its heavy reliance on restaurant and other food-service customers has been a challenge.
Chief Executive Officer Ethan Brown described the return of restaurant and food-service demand as a “slow thaw,” suggesting it will take much longer for the company to fully regain the lost portion of its sales due to the pandemic. BYND shares closed on Friday at $122.70, little changed for the year.