The Week Ahead 01/24/2022

Take a deep breath and don’t panic. The market is in an ugly place, but we knew this was in the cards. That’s why I sent out the post below at the beginning of December — breaking down how I was shifting my portfolio to more strict capital allocation and encouraging less risky plays.

Upcoming for Rate of Return:

Tuesday (Jan. 25) — We’re in a Bear Market (Playbook)

Wednesday (Jan. 26) — The Crypto Wash Rule Explained | Twitter Spaces w/ Defiance CIO Sylvia Jablonski & ex-Reddit / ex-Facebook employee LDF — We’ll be talking about the current state of crypto markets & tech stocks. Here’s a link to set a reminder.

Thursday (Jan. 27) — My Favorite Stocks in Charts, Part 2

Friday (Jan. 28) — Social Media Recap

Sunday (Jan. 30) — Week in Review

In this post, we’ll cover:

Hot IPOs taking place this week
Quarterly financial reports worth reading
Investor events to keep an eye on
Major economic releases

The Investing Week Ahead – Too Long, Didn’t Read:

We’ll see if the trend of delaying IPOs continues, the trio of Apple, Microsoft, & Tesla release critical earnings reports for broader market sentiment, investor conferences across various disciplines look to give us some 2022 outlook, US GDP figures come at a time of uncertainty, and we get the all-important updates from the FOMC regarding rate hikes.

IPOs to Watch this Week:

Two tech IPOs are the main callouts for the week. We’ll see if they follow the pattern of recent companies and postpone their public offerings.

Credo Technology Group (CRDO)

This San Jose, California-based connectivity solutions provider was founded to “deliver high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market.”

They plan to raise $275 million through an IPO, at a $1.8 billion market cap.

Credo’s products include Active Electrical Cables (AECs), Integrated Circuits, and SerDes Chiplets.

The offering is expected to price between $10 and $12 per share.

I’m not exactly interested in this company, especially with the current market conditions. However, they seem to be making some remarkable products for the 5G and data infrastructure revolutions.

—

Direct Digital Holdings (DRCT)

This Houston, Texas-based AdTech company was founded to “bring state-of-the-art supply-side and demand-side advertising platforms together under one umbrella company.”

They plan to raise $32 million through an IPO, at a $123 million market cap.

Direct Digital is used by 30,000+ clients daily and yields 50 billion+ impressions per month for its clients. Its primary products are a custom supply-side platform named Colossus SSP, a performance marketing solution named Huddled Masses, and a demand-side technology for omnichannel marketing called Orange 142.

The offering is expected to price between between $7 and $9 per share.

Simply too small and too risky of a play for me to have interest in exploring more. Wishing them the best though!

Key Earnings Announcements:

January 24: Halliburton Co. (HAL), IBM (IBM), Logitech (LOGI), Philips (PHG)

January 25: 3M Co. (MMM), American Express (AXP), Capital One (COF), General Electric (GE), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Microsoft (MSFT), Raytheon Technologies (RTX), Texas Instruments (TXN), Verizon (VZ)

January 26: Anthem (ANTM), AT&T (T), Boeing (BA), Intel (INTC), Progressive (PGR), ServiceNow (NOW), Tesla (TSLA), Xilinx (XLNX)

January 27: Apple (AAPL), Blackstone (BX), Mastercard (MA), McDonald’s (MCD), Robinhood (HOOD), Visa (V)

January 28: Caterpillar (CAT), Chevron (CVX)

As mentioned in this TikTok video, all eyes are on the big time names this week. The results of Apple, Microsoft, and Tesla could be very indicative of the severity of this downward spiral.

Event-Driven Winners:

Our friends at LevelFields took the time to scrub through thousands of data points and determine how events affected stock prices last week. This info may help you with forming your swing trading theses (if that’s your thing), or simply seeing what actions cause stocks to jump!

The five largest event-driven price changes over the past week:

Circor International (CIR): +11.7% upon announcing its CEO was leaving
Opera Ltd (OPRA): +8.5% on news of a stock buyback
Union Bankshares (UNB): +3.1% on news of a dividend increase
Zymeworks (ZYME): -14.2% on news of mass layoffs
Peloton (PTON): -23.9% on news of mass layoff and production halt (combined -27.44% over two days)

Investor Events:

Keeping my eye on Jefferies’ Winter Summit to get a better gauge on how client-facing companies are passing through inflation costs. The Gaming Summit is also just one week after Microsoft (MSFT) sent shockwaves by buying Activision Blizzard (ATVI) — you’re up, Facebook!

January 23-25: Jefferies (JEF) Winter Restaurant, Foodservice, Gaming, Lodging & Leisure Summit 2022

January 25: Baird Vehicle Tech & Mobility Conference

January 25-27: The 2nd Annual GamesBeat & Facebook (FB) Gaming Summit

January 26-28: TD Securities Global Mining Conference

Major Economic Updates:

While they may not be as important as the big tech earnings reports from 3 of the top 6 most valuable companies in the world — these metrics will absolutely impact the markets. We’ll keep tabs most closely on the FOMC, GDP, and Consumer Spending.

January 24: Manufacturing PMI & Services PMI from Markit Economics

January 25: Consumer Confidence Index from The Conference Board

January 26: FOMC Rate Decision, Jerome Powell Press Conference, New Home Sales from the US Census Bureau

January 27: Gross Domestic Product (GDP) from the US Bureau of Economic Analysis (BEA)

January 28: PCE Inflation and Consumer Spending from the US BEA

Have a great start to your week! If you find these Week Ahead posts valuable, please consider sharing with a friend!

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.