Investors will be bracing for another volatile week in the stock market this week on signs that ongoing bearish sentiment has more room to run, especially when an adverse macroeconomic environment has begun to hurt corporate America.
Rising interest rates, some high-profile earnings disappointments, and escalating geopolitical risk weighed heavily on stocks in April.
For the NASDAQ Composite, the past month was the worst since 2008, as both Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL)—two tech heavyweights—signaled a tough road ahead as supply-chain disruptions and higher costs reduce their profitability.
Shares of Amazon tumbled about 14% on Friday—the stock's biggest drop since 2006—after the e-commerce giant reported a surprise loss and issued weak revenue guidance for the second quarter.
The S&P 500 lost 8.8% in April, its worst month since March 2020, while the Dow Jones Industrial Average was down 4.9% on the month.
Amid this challenging economic backdrop and uncertainty regarding corporate growth, we've short-listed three stocks that could see some accelerated trading action after they report quarterly numbers during the week ahead:
1. Advanced Micro Devices
Advanced Micro Devices (NASDAQ:AMD) will report its latest quarterly earnings on Tuesday, May 3, after the market close. Analysts expect the Santa Clara, California-based chipmaker to report $0.91 a share profit on sales of $5.01 billion.
After a powerful rally in 2021, AMD shares have been under intense selling pressure this year. The stock is down about 40% year-to-date, at a time when the benchmark Philadelphia Semiconductor Index has weakened by about 27%. Shares closed at $85.52 on Friday.
This sell-off comes despite the chipmaker producing a surprisingly strong sales forecast in February, suggesting it’s making additional gains in computer processors versus archrival Intel (NASDAQ:INTC).
The chipmaker’s first quarter sales outlook showed that AMD is reaching a level of profitability that’s nearly identical to Intel’s—something that would have been inconceivable just a few years ago. First-quarter revenue will be $5 billion, plus or minus $100 million, according to AMD.
2. Airbnb
Airbnb (NASDAQ:ABNB), the stays and experiences travel services platform, will also report its Q1 2022 earnings on Tuesday after the market close. Analysts forecast a loss of $0.25 a share for the period on sales of $1.45 billion.
The San Francisco-based company has weathered the pandemic-triggered slump in travel much better than its competitors, benefiting from consumers opting to travel closer to home and often booking for longer periods or for more frequent stays in order to take advantage of flexible remote work policies.
Chief Executive Officer Brian Chesky called 2021 “the best year in our company’s history,” and said that Airbnb was able to weather the pandemic because of its highly adaptable business model.
As travel restrictions ease globally after the latest surge in COVID infections, chances are the company will have a strong forecast for its upcoming summer quarters. Airbnb stock closed on Friday at $153.21, down more than 12% for this year.
3. Moderna
Moderna (NASDAQ:MRNA), the Cambridge, Massachusetts-based biotech firm, will report Q1 earnings on Wednesday, May 4, before the market open. Analysts expect $5.74 a share profit on sales of $4.45 billion.
The company is one of two major providers of the COVID-19 vaccine, along with Pfizer (NYSE:PFE). Shares of MRNA rallied during the pandemic, but the stock has tumbled 47% this year. It closed on Friday at $134.41.
This sharp pullback comes as the Omicron wave of the virus has been rapidly fading, making it unclear what the near-term outlook will be for vaccine producers if the pandemic moves to an endemic stage after the most recent surge.
The messenger RNA vaccine maker said it has signed $19 billion worth of agreements for 2022 sales of its shot, up from $18.5 billion announced in January. As well, the company said on Thursday it had "asked U.S. regulators to authorize its COVID-19 vaccine for children under the age of 6, which would make it the first shot against the coronavirus available for those under 5 years old."