Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look now at some stocks making news
Speaker 1: in the week ahead. I'm Nathan Hager, joined by Bloomberg
Speaker 1: News Equities reporter Alexandra Semenova and alex We're gonna hear
Speaker 1: from some big ones this week in terms of the earnings.
Speaker 1: The biggest name in retail is reporting on Thursday. What
Speaker 1: are we expecting from Walmart?
Speaker 3: Hey, Nathan, So it is indeed going to be another
Speaker 3: busy earnings week. Walmart is such a bell weather of
Speaker 3: low and mid income consumers, so that's going to be
Speaker 3: an important company to watch. It is scheduled to report
Speaker 3: earnings results before the bell on February nineteenth, And something
Speaker 3: to note ahead of its earnings read out is Walmart
Speaker 3: just saw its market cap eclipse the one trillion dollar
Speaker 3: mark on February third for the first time ever. This
Speaker 3: is something that you don't see from retailers. It's something
Speaker 3: you typically see from tech giants. So Walmart is now
Speaker 3: in a category typically occupied by big tech heavyweights such
Speaker 3: as Nvidia and Alphabet Inc. And Walmart is a long
Speaker 3: time favorite, of course, of bargain hunting consumers, which is
Speaker 3: why it has been doing so well. It has flexed
Speaker 3: its massive scale and supplier network to keep prices low
Speaker 3: and grab market share across various income levels. And not
Speaker 3: only has Walmart maintained its appeal to households looking for value,
Speaker 3: it's also been recently drawing some new wealthier shoppers as
Speaker 3: well with its online business. So when we get to
Speaker 3: those results, some of the key metrics to watch will
Speaker 3: be same source store sales performance. That is going to
Speaker 3: be an important metric to monitor growth for long term
Speaker 3: revenue and profit expansion for the company, contribution from higher
Speaker 3: margin businesses to and inventory management. And I want to
Speaker 3: point out that the stock is up something like nineteen
Speaker 3: percent year to date, so the bar is pretty high
Speaker 3: going into these results.
Speaker 1: Yeah, certainly with a trillion dollar valuation now and with
Speaker 1: the fact that Walmart recently relisted to the Nasdaq, it
Speaker 1: really does seem like they're leaning into this tech side
Speaker 1: of the story. But we're also going to hear from
Speaker 1: another name that we think of more traditionally on the
Speaker 1: tech side, door Dash reports on Tuesday, Right.
Speaker 3: Yeah, it does, Nathan. So I'd say for this company,
Speaker 3: the main thing investors will be watching is signs that
Speaker 3: it can monetize on heavy capex spending. So during the
Speaker 3: last earnings report from DoorDash, it took a record plunge
Speaker 3: after the company said it's going to spend more on
Speaker 3: investments next year to build new products and bolster internal tools,
Speaker 3: which really weighed on its earnings forecast. These increased costs
Speaker 3: contributed to a muted fourth quarter forecast for adjusted EBITA specifically,
Speaker 3: with the company expecting that metric to be around seven
Speaker 3: hundred and ten million dollars to eight hundred and ten
Speaker 3: million dollars, so watch that number. Also watch order growth,
Speaker 3: which is currently exceeding that of some of its online
Speaker 3: delivery peers, and it's also supposed to get a potential
Speaker 3: boost from Delivery, which it acquired recently, so that's going
Speaker 3: to be something to monitor during those results. And then
Speaker 3: it is also expanding into new categories beyond just restaurant delivery,
Speaker 3: so groceries and convenience, which are expected to aid with
Speaker 3: consumer retention and head of the report, some of the
Speaker 3: big Wall Street firms did lower their price targets on
Speaker 3: the company. Bank of America was one of them, lowering
Speaker 3: their price target to two hundred and sixty dollars a
Speaker 3: share from three hundred and five dollars a share, but
Speaker 3: it did still maintain a by rating. Goldman Sachs added
Speaker 3: door Dash actually to its US conviction list, so that's
Speaker 3: pretty positive. And one more thing to note is, of course,
Speaker 3: DoorDash and Uber just lost a bid to block a
Speaker 3: New York City law requiring a tipping option to be
Speaker 3: presented to customers at checkout from going into effect, so
Speaker 3: it's likely we're going to see perhaps management commentary on
Speaker 3: that front. DoorDash has been having a pretty hard start
Speaker 3: to the years, down something like twenty seven percent so far.
Speaker 1: Well, another big name we're going to hear from is
Speaker 1: a bell Weather on the agriculture economy. Deer has really
Speaker 1: been on a tear since the start of the year.
Speaker 2: Alex.
Speaker 3: Yeah, it has been a really interesting company to watch,
Speaker 3: given the fact that it's kind of been at the
Speaker 3: center of Wall Street's big rotation trade into sectors outside
Speaker 3: of technology. So it's actually trading at a record high
Speaker 3: now amid a rally that has come as interest rate
Speaker 3: cuts and strong US growth push investors into sectors of
Speaker 3: the market closely linked to the health of the US economy.
Speaker 3: So deer Cell's construction equipment in addition to its iconic
Speaker 3: farmer machinery, and that's been an industry that up until
Speaker 3: recently was really struggling. Investors are betting it could get
Speaker 3: a boost from the Fed's monetary easing and some data
Speaker 3: that showed that the US economy is expanding at a
Speaker 3: healthy pace. So when the company reports earnings, Wall Street
Speaker 3: will be looking for any update on its industry outlook.
Speaker 3: Investors are still waiting for a rebound in the US
Speaker 3: farm economy, specifically, so something that would spur farmers to
Speaker 3: buy new tractors and other equipment. Deer shares had hit
Speaker 3: a record last May on the same hopes, but that
Speaker 3: turned out to be a headfake, so the key question
Speaker 3: is will this also be The farm economy is projected
Speaker 3: to extend its downturn actually through twenty twenty six so far,
Speaker 3: expecting net farm income to fall by one percent according
Speaker 3: to the USDA, and deer also said in November that
Speaker 3: it expected industry sales of large equipment to fall fifteen
Speaker 3: percent to twenty percent in the US and Canada, so
Speaker 3: we're going to see what it says on those fronts.
Speaker 3: It is up nearly thirty two percent year to date.
Speaker 3: Yet again, a company that has a really high bar
Speaker 3: going to report.
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