The prominent US mega-cap tech stocks are already disclosing their most recent results, including Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA).
While those names received the majority of the attention, a number of cloud computing and software companies that have recovered after a sector-wide selloff earlier this year are still need to report.
As the sector tries to recover from its recent selloff, we look at three battered IT businesses worth examining ahead of their forthcoming quarterly releases next week.
In fact, since hitting a recent 52-week low on June 16, the NASDAQ 100 has increased 20.6%.
NASDAQ 100 Daily PALANTIR Earnings Date: August 8 before the start of trading Year-To-Date Efficiency: -37.8% Capitalization: $23.1 billion As it lost popularity, Palantir Technologies (NYSE: PLTR), which offers data analytics software and services to huge organizations worldwide, has seen its valuation plummet recently.
Shares of the data-mining company have significantly lagged the overall market in 2022 as a toxic trifecta of rising interest rates, increased inflation, and slower economic growth caused an aggressive reset in values across the tech sector.
Since hitting an all-time low of $6.44 on May 12, PLTR has increased by about 74%. Despite a recent uptick, Palantir is still about 38% off its record high of $45.00 hit in January 2021 and is currently roughly 75% below it.
Palantir Daily Palantir provided weak revenue guidance while providing mixed outcomes for the prior quarter. According to widely-held projections, the company’s revenue will rise 26% year over year (yoy) to a new high of $471.7 million as a result of increased demand for its data analytics products and services. But EPS is expected to decrease 25% year over year to $0.03.
The government sector, which makes up more than half of Palantir’s overall sales, will be closely watched by investors. With only a 16% year-over-year increase in revenue, Palantir’s technology was slightly behind forecasts in this sector in the first quarter.
As Palantir has been attempting to broaden its customer base and expand into the manufacturing, energy, and health care sectors, its total commercial revenue, which outperformed, rising 54% in Q1, will also be widely followed. The client count, which increased 86% year over year in Q1, will also be of interest.
Watch for management’s comments on upcoming sales as there are worries that it won’t achieve its objective of achieving top-line growth of at least 30% through 2025.
Palantir Consensus Estimates, image 3 According to a survey conducted by Investing.com, the majority of experts still have a favorable outlook for Palantirs shares.
Profits for UPSTART HOLDINGS Date: Monday, August 8 following the conclusion of business Year-To-Date Efficiency: -81.3% Capitalization: $2.4 billion Upstart Holdings (NASDAQ: UPST), which utilizes artificial intelligence algorithms to assess personal loan applications for banks, saw its shares decline this year after surging in 2021.
The value of the company’s stock has plummeted by over 81% year to date. On July 26, UPST stock fell to $22.42, its lowest point. It has subsequently recovered, but it is still only at around 93% of its all-time high, which was $401.49 in October 2021.
Newcomer Daily Upstart significantly outperformed analyst predictions in the prior quarter, however future guidance was reduced and fell far short of expectations. According to consensus projections, higher demand from small banks and credit unions will cause income to climb by 21% year over year to $235.3 million. EPS, meanwhile, is anticipated to fall 86% to $0.07.
The overall loan volume of the AI consumer lending platform’s operators will be closely monitored because rising interest rates could lower demand.
Consensus Estimates from Upstart The majority of analysts surveyed by Investing.com grade Upstarts stock as either outperform or hold despite its significant year-to-date fall.
On InvestingPro, Upstarts stock has an average fair value of $39.95, with a potential upside of 41%.
Upstart Fair Value (
) Earnings on COINBASE Global Date: Tuesday, August 9 following the conclusion of business Year-To-Date Efficiency: – 64.7% Capitalization: $19.7 billion This year, investors have lost interest in Coinbase Global (NASDAQ: COIN), which is largely regarded as the top cryptocurrency exchange for buying and selling Bitcoin.
On the first day of trading in April 2021, the shares shot to an all-time high of $429.54, but they have since fallen by nearly 65% year to date. However, after bottoming out, the shares have now recovered by 117% over the course of the last four weeks.
Bitcoin Daily Coinbase’s Q1 revenue was underwhelming. Due to rising operating costs and spending, Q2 consensus forecasts estimate for a loss per share of $1.21.
Given the poor state of the cryptocurrency industry, revenue is expected to drop by 60.7% year over year to $876.1 million.
Investors’ attention will be drawn to Coinbase’s statement on monthly transaction users (MTUs), which dropped to 9.2 million in the most recent quarter, slightly underperforming forecasts. After falling 8% yoy to $309 billion in Q1, the total trade volume will also be monitored.
It will be interesting to hear what the management of Coinbase has to say about projected revenue and user growth for the rest of the year.
Consensus Estimates from Coinbase According to a study conducted by Investing.com, the consensus advice is outperform with a reasonable amount of confidence.
A disclosure has been made: Jesse owned COIN stock at the time of writing. The author’s opinions are the only ones expressed in this post, and they shouldn’t be construed as investment advice.