It is going to be a huge week for earnings reports; Amazon, Proctor & Gamble, Alphabet, Facebook and McDonalds are among the companies scheduled to report. That means we should get a good picture of the U.S. economy and consumer spending from this week’s reports.
Proctor & Gamble (NYSE: PG) and McDonald’s (NYSE: MCD) are the two reports I’m most looking forward too. Both of those value favorites have been struggling with falling revenues for a long time. P&G is scheduled to report on Thursday July 27.
It reportedly moved up its earnings date in an attempt make Mr. Market happier, USA Today reported. P&G certainly needs to do something to please the markets’ its revenue has dropped for every quarter since June 2015; despite owning some powerhouse brands such as Tide and Ariel laundry detergent, Pampers, and Crest toothpaste.
Proctor & Gamble reported revenues of $70.75 billion in June 2015 and $65.08 billion in Mach 2017. The reason for the revenue drop is not clear but changing shopping habits, deep discounting by retailers and the popularity of private label brands might be hurting it.
Is McDonald’s Stock about to Collapse
Mickey D’s is supposed to report its earnings on Tuesday July 25, 2017.
A lot of people will be paying close attention here because McDonald’s has been a market favorite in recent months. Its revenues shot up last month when it announced a plan to replace cashiers with touch screen kiosks.
Despite its grossly overinflated stock price; $152.92 on July 21, 2017, McDonald’s has been struggling with a serious revenue collapse for some time. Between March 2014 and March 2017; its revenues fell from $28.20 billion to $24.39 billion making for a fall of $3.91 billion in just three years.
One has to wonder if investors will keep rewarding Mickey D’s for losing revenues. My take is a major share price collapse is imminent at this company because it’s simply overvalued.
Same Old, Same Old with some Great Stocks
The situation at Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN) and Facebook (NASDAQ: FB) will be same old, same old. That is more income, more cash, more revenue and lots of happy stockholders.
Expect to see these three push the whole market up this week. I would not be surprised to see Facebook; scheduled to report on Wednesday, July 26, with a share price of $180 or higher by Friday. Amazon scheduled for Thursday July 27, and Alphabet (NASDAQ: GOOGL) scheduled for Monday July 24 will probably see their prices clear $1,000 a share.
How Amazon or Alphabet could trigger a Market Crash
If there’s a big fall this week it will probably be McDonald’s. Any serious weakness at Alphabet, Facebook or Amazon would send the markets into a tailspin.
What’s even more frightening is that one bad earnings report from either Amazon or Google might trigger a market crash. Those companies are simply that huge and important to investors; that alone should have us asking if those behemoths are now too “big to fail.”
Watch the earnings closely, I have a feeling this will be an important week in which everybody will be able to identify some very important trends. Things should be fine but there is the potential for some nasty surprises from this week’s earnings reports.