Get Ready For Tech Earnings Next Week: DoorDash, Airbnb, Activision Blizzard, and Others

Get Ready For Tech Earnings Next Week: DoorDash, Airbnb, Activision Blizzard, and Others

Investors have a few days to brace for another onslaught of financial data coming next week after a three-day deluge of quarterly reports from half a dozen of the world’s major tech companies — Amazon AMZN +0.33%, Apple, Microsoft MSFT -0.97%, Alphabet, Intel, Meta, among other.

The batch from this week was received differently. Better-than-expected results were posted by Amazon, making it the huge winner. It’s a Win for Amazon. The Shares Blow Up. The last quarter saw a 7% increase in Amazon sales. On hearing the news, shares rose 11% and that led to a market rise on Friday that was particularly strong. Microsoft (ticker: MSFT) also had a well-received quarter, partly as a result of some optimistic predictions for the upcoming year.

As iPhone sales remained robust and component difficulties subsided, Apple’s quarter came in slightly ahead of expectations. A strong market for search advertising helped to improve Alphabet’s results. However, Meta offered a discouraging prognosis on lackluster ad sales, and Intel suffered as PC and data center chip sales declined.

Investors have been comforted by the fact that the current tech earnings season hasn’t been as dismal as anticipated. And every firm reporting the next week will be dealing with some variation of the same economic challenges: a strong currency, rising interest rates, Russia’s conflict with Ukraine, a sluggish PC and advertising market, and declining consumer demand.

What we observed this week was that investors are willing to purchase shares of companies that are deftly navigating those challenges (such as Amazon and Microsoft), but they will continue to sell when faced with the possibility of longer-term problems, as seen not only with Intel and Meta, but also with Roku, Coursera, and Teledoc, all of which suffered sharp declines last week on weak results and guidance.

The following are some highlights for the next week:

Arista Networks

Results from Arista Networks (ANET) are expected to be remarkable when they are released on Monday. The firm is a significant supplier of networking equipment to the major cloud providers, and they all them continue to make significant investments in the construction of new data centers to support rapid development.

Google Cloud increased its revenue by 36%, Amazon Web Services increased its revenue by 33%, and Microsoft Azure’s revenue increased by 46% when currency fluctuations were taken into account. As it expands the metaverse, Meta is maintaining its ambitious capital investment program despite decreasing total expenditure expectations.

Cisco (CSCO) and Ciena (CIEN), whose quarters conclude in July, might be able to get some insight from Arista’s performance about the networking results to come.

Cloud Computing

While many of the major providers of cloud computing applications have July quarters and won’t report for another couple of weeks, Fastly (FAST) and Cloudflare (NET), two providers of content delivery networks, will provide updates the next week. Additionally, we’ll receive a variety of reports from the software industry, including those from Atlassian (TEAM), Dropbox (DBX), Datadog (DDOG), Fortinet (FTNT), and Twilio (TWLO).

Electronic Arts and Activision Blizzard

Activision Blizzard ATVI +0.16 percent (ATVI) reports on Monday, while EA (EA) reports on Tuesday. Activision’s attention is focused on the progress of the company’s imminent acquisition by Microsoft.

E-commerce

Walmart’s recent earnings warning and Shopify’s wave of layoffs hammered the retail sector. Keep a watch on the results of eBay (EBAY) on Wednesday and Wayfair (W) and BigCommerce (BIGC) on Thursday for new insights on the status of the e-commerce sector.

Food Delivery and Ridesharing Platforms

Results from the “sharing economy” players will also be released, including those from DoorDash (DASH) and Lyft (LYFT) on Thursday and Uber (UBER +4.90%) on Tuesday. All three equities have been harmed by ongoing post-pandemic problems, as well as by rising gasoline prices and a lack of drivers. These companies are in desperate need of, well, a boost: year to date, Uber is down 45%, DoorDash is down 54%, and Lyft is down 69%.

Semiconductors

Given Intel’s disappointing results on Thursday, Advanced Micro Devices (AMD) will release its financial results on Tuesday, which will be highly scrutinized in the semiconductor industry. Both major suppliers of mobile phone radio chips, Qurvo (QRVO) and Skyworks (SWKS), will release earnings reports the following week. An industrial and automotive chip producer called ON Semiconductor (ON) released financial results on Monday.

Travel Booking Platforms

Next week, Expedia (EXPE), Booking (BKNG), and Airbnb (ABNB) are the three biggest online travel companies that will all release their quarterly financial results. During this week’s call, Alphabet mentioned that a strength in travel was a contributing factor to its good search results.

According to Philipp Schindler, chief business officer of Alphanet, “searches for destinations to travel in the summer were up two times internationally year over year, while queries for last-minute hotel discounts were up 50%.”

That is excellent news for a sector that has had conflicting outcomes following the epidemic.

Yelp

When it reports on Thursday, Yelp (YELP) will provide some hints about the state of the local advertising industry.

 

A Seattle business has launched a predictive home maintenance service with once-weekly offers

Welcome Home, a Seattle-based business that has emerged from stealth mode, is a predictive home maintenance service that helps arrange contractors and plan community discounts. Every Tuesday, consumers are notified of an offer that will be available the following day, such as yard cleaning, window washing, automobile detailing, and other services. The organization may also help with odd things like hanging a television.

Ashley Michael, a lifelong real estate and property management expert who serves as CEO, and Patrick Opie, a tech veteran who previously founded Scout9, a website that guides users through the many phases of pet ownership, are Welcome Home’s co-founders.

“Everyone is simply so busy,” Michael explained when asked what inspired her to start her own business.

Managing a to-do list or determining who to call for assistance may be difficult for homeowners, she says. Welcome Property’s predictive maintenance model is based on seasons, geographic area, neighborhoods, home types in specific neighborhoods, and other factors.

The business recently completed a test pilot in the Seattle areas of Magnolia, Queen Anne, and Madison Park, during which they discovered, among other things, that homeowners frequently postpone even the most basic maintenance duties. The firm aims to be the go-between, finding the best contractors at the greatest price.

“It’d be great to have 20 homes in a neighborhood that are consistently opting into the various offers,” Michael added, “and also help them with activities that might not be on the deal circuit.”

Rather than creating an app, Welcome Home uses text messaging to communicate with its “home managers.” For example, are there leaves stacking up? Send an SMS to that manager to begin the cleaning procedure.

Welcome Home generates money by collecting a tiny portion of the price paid by clients to contractors for any services. Currently, the organization does not charge contractors any fees to be linked with its weekly specials in order to push those contractors to deliver the finest service at the greatest price.

Several tech businesses have attempted to handle house repairs and services. Welcome House claims to take a “more predictive and proactive approach” to home upkeep than competitors Porch, TaskRabbit, and Thumbtack. Michael described rivals’ strategies as “reactive,” implying that when homeowners have a need, they seek out a service provider.

“WelcomeHome brings home services to residents’ doors in a really easy, fun, and cost-effective way,” she explained.

Because of the high cost of labor and supplies, Michael described Seattle as a difficult market for launching a home services business. Despite the fact that other startups and tech firms are facing the economic uncertainties of a downturn, she is confident about launching in Seattle.

“I believe that a lot of individuals are withdrawing projects or not opting to conduct home remodels, or that there is simply a slight change taking place in that business,” Michael added. We now have a large selection of service providers to pick from, which will result in better prices.

Tihan Seale, an investor, provided some pre-seed investment to Welcome Home, which only has Michael and Opie working for it. However, the company declined to provide exact figures. The firm also intends to run operations in Phoenix and Denver after Seattle.