3 Hot Tech Stocks Showing Signs Of Bottoming Ahead Of Q2 Earnings
Investing.com | Aug 05, 2022 12:19
- Wall Street Q2 earnings season begins to wind down
- A variety of cloud-computing and software companies still due to report
- Consider buying Palantir, Upstart, and Coinbase
- Earnings Date: Monday, August 8 before the market open
- Year-To-Date Performance: -37.8%
- Market Cap: $23.1 billion
- Earnings Date: Monday, August 8 after the market close
- Year-To-Date Performance: -81.3%
- Market Cap: $2.4 billion
- Earnings Date: Tuesday, August 9 after the market close
- Year-To-Date Performance: -64.7%
- Market Cap: $19.7 billion
The high-profile US mega-cap tech stocks, including Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA), are already reporting their latest results.
While most of the focus was on those names, a variety of cloud-computing and software companies—which have regained their footing following a sector-wide selloff earlier this year—are still due to report.
We examine three pummeled tech companies worth considering ahead of their upcoming quarterly earnings next week as the sector attempts to rebound from its recent selloff.
Indeed, the NASDAQ 100 has climbed 20.6% since falling to a recent 52-week low on June 16.
Palantir/h2
Palantir Technologies (NYSE:PLTR), which provides data analytics software and services to government agencies and large corporations globally, has seen its valuation crumble in the last several months as it fell out of favor
Shares of the data-mining specialist have underperformed the broader market by a wide margin in 2022 as a toxic combination of higher interest rates, accelerating Investing.com survey.
Upstart Holdings/h2
After soaring in 2021, Upstart Holdings (NASDAQ:UPST), which uses artificial intelligence tools to evaluate personal loan applications for banks, has seen its stock struggle this year.
Shares of the AI lending platform provider have crashed by roughly 81% ytd. UPST stock sank to $22.42, its lowest level on July 26, and has since rebounded but is about 93% of its all-time high of $401.49 in October 2021.
Upstart blew past analyst expectations in the previous quarter but lowered future guidance which fell far short of estimates. Consensus estimates are for a 21% yoy increase in revenue to $235.3 million due to increased demand from small banks and credit unions. But EPS is forecast to tumble 86% to $0.07.
The AI consumer lending platform operator’s overall loan volumes will be closely watched as rising interest rates may reduce demand.
Despite its sharp year-to-date decline, most analysts surveyed by InvestingPro is $39.95, a potential 41% upside.
Coinbase Global/h2
Coinbase Global (NASDAQ:COIN), which is widely considered as the leading cryptocurrency exchange for buying and selling Bitcoin, has fallen out of favor with investors this year.
The shares soared to an all-time high of $429.54 on its first day of trade in April 2021 but are now down about 65% ytd. But the shares have since shown signs of bottoming, rebounding by 117% in the last four weeks.
Get The App
Coinbase reported disappointing revenue in Q1. Q2 consensus expectations call for a Q2 loss per share of $1.21 due to higher operating expenses and increased spending.
Revenue is forecast to plunge 60.7% yoy to $876.1 million, reflecting deteriorating crypto market conditions.
Investors will focus on Coinbase’s update regarding monthly transaction users (MTUs) which fell to 9.2 million in the last quarter, slightly missing expectations. Total trading volume will also be eyed after declining 8% yoy to $309 billion in Q1.
Comments from Coinbase’s management on future revenue and user growth for the remainder of the year will be of interest.
The consensus recommendation according to an survey is ‘outperform’ with fairly high conviction.
Disclaimer: At the time of writing, Jesse had a position in COIN shares. The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.