Tech Earnings This Week

I scanned the list of earnings from the tech sector that are coming this week. I see 194 different tech stocks reporting next week.

The biggest name on the list is Nvidia (NVDA) but don't let that chip stock blind you to the others like Zillow (ZG) Snap Inc (NYSE:SNAP) and others.

The China contingent will be well represented by JD, NTES, WB and SINA all expected to report this week.

My Pick

One name that I will be looking closely at is The Trade Desk (TTD). The company has only reported three times but all three were beats. The two most recent beats also saw guidance increases as well. TTD is up 97% year to date

Importantly, the company has beaten the top line estimate in each of the three reports, which tells me that the analysts are not fully up to speed on how this company is bringing in sales.

Big Seller

Back in June, Wellington Management disclosed that the lowered their passive stake in the company to 5.29% which is down from 9.1%. That is a significant amount of shares and there is a real chance that the company lowers its stake below the 5% threshold which would end its requirement to make 13G/D filings in this stock.

There were plenty of speculation that Wellington was behind the follow on offering that took place in late May in which the company sold 4.3M shares at $52.

Targets

Following the most recent beat and raise quarter, analysts adjusted their price targets. Cantor Fitzgerald upgraded the stock to overweight and moved their target to $55 from $40. RBC moved their target to $56 from $45 and Needham liked that number as well hiking their target by $8. Jefferies is the biggest bull in the name with a price target of $57.

August 10

The company is slated to report after the close on August 10. Analysts are expecting revenue of $68M and EPS of $0.18.

This might be a little early to look at the implied straddle, but I see the options market calling for a move of 13% in the stock. Last quarter the implied move was 12% but the stock soared more than 30% after posting a big beat and raise.

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