The week ahead 02/07/2022

Cheers to Super Bowl Week!

Some crazy perspective to kick off your Monday morning:

The Cincinnati Bengals were tied with the New York Jets as one of the least likely teams to win Super Bowl LVI. They’ll be taking on the Los Angeles Rams, who were a consensus Top 5 favorite to win the Lombardi Trophy.

For you gambling lovers — if you would have bet $10 on the Bengals before the season, a victory this Sunday would net you $1,500. That would be a 150X return your “investment.”

Before we jump in to things — Katie Stockton and I recorded a 27-minute video last week breaking down the current market environment from a technical analysis perspective. If that’s your thing, you’ll really like this video!

“We’re making the call that there’s going to be a lot of volatility this year — both to the up side and to the down side. But the end results perhaps is more neutral as the strong gains over the last couple of years are digested into sideways price action.”

— Katie Stockton, speaking specifically toward the Nasdaq

Finally, let’s jump into everything you need to look out for over the next 5 trading days.

Estimated Read Time: 6 minutes

Upcoming for Rate of Return:

As a heads-up, our team will be traveling at the end of this week. We will do our best to get back to your outreach in a timely manner.

Tuesday (2/8) — 2021: The Year of the Cloud (Deep-Dive Analysis)

Thursday (2/10) — Aritzia: The Next Lululemon? (Stock Pitch)

Friday (2/11) — Social Media Spotlight

Sunday (2/13) — Week in Review

In this post, we’ll cover:

• Quarterly financial reports worth reading

• Investor events to keep an eye on

• Major economic releases

• Event-driven winners

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

Affirm, Chipotle, Peloton, Pfizer, Disney, Twilio, Uber, and many others headline another jam-packed week of earnings reports, An airline merger could result in America’s 5th largest airline, Uber’s rare Investor Day raises questions, and the market anxiously awaits fresh inflation data.

Key Earnings Announcements:

For those of you who made New Year’s resolutions to listen in on company earnings calls — this week is your chance! We’ll be hearing from a ton of household names.

Monday (2/7): Amgen (AMGN), Chegg (CHGG), Hasbro (HAS), Tyson Foods (TSN)

Tuesday (2/8): Aramark (ARMK), British Petroleum (BP), Chipotle Mexican Grill (CMG), Digital Turbine (APPS), Fiserv (FISV), Harley-Davidson (HOG), Lyft (LYFT), Peloton (PTON), Pfizer (PFE), Sysco (SYY), Warner Music Group (WMG)

Wednesday (2/9): CVS Health (CVS), Disney (DIS), Honda Motor (HMC), Mattel (MAT), MGM Resorts (MGM), Sonos (SONO), Twilio (TWLO), Uber Technologies (UBER), Yum! Brands (Yum), Zynga (ZNGA)

Thursday (2/10): Affirm (AFRM), AstraZeneca (AZN), Callaway (ELY), Cloudflare (NET), Coca-Cola (KO), Datadog (DDOG), Expedia (EXPE), HubSpot (HUBS), PepsiCo (PEP), Philip Morris (PM), Upwork (UPWK), Zillow Group (ZG)

Friday (2/11) : Apollo Global Management (APO), Dominion Energy (D), Goodyear Tire (GT), Under Armor (UA)

Questions we’re asking:

• Will rising costs and employee shortages hamper Chipotle’s Q4 earnings?

• Will the rumors of a Peloton acquisition by Amazon, Apple, or Nike be true?

• Will Warner Music Group continue with its interesting metaverse moves?

• Will Disney separate itself from Netflix through continued streaming growth?

• Will Affirm announce yet another blockbuster partnership, to go along with Amazon and Target? Will their 2022 guidance now include Amazon revenue?

• Can Cloudflare beat top and bottom line earnings for the third consecutive quarter?

• Will Zillow’s financial performance be impacted by closing its iBuyer segment?

Investor Events:

All eyes on Uber’s Investor Day as investors look or updates on the path to profitability and new information on the penetration of the grocery market.

Monday (2/7): Spirit Airlines (SAVE) & Frontier Airlines (ULCC) Merger Details

Early Monday morning, Spirit and Frontier Airlines announced a merger to create what would be the fifth-largest airline in the country. Further details (and potential government pushback) are expected in the coming days.

Thursday (2/10): Uber Technologies (UBER) Investor Day

Friday (2/11): GoDaddy (GDDY) Investor Day

This will be Uber’s first ever Investor Day since the company IPO’d in May 2019. Given this rare occurrence, Uber Freight’s recent acquisition of a shipper technology company, another acquisition of an alcohol delivery platform, and consistent expansion to become a bigger part of users’ daily lives — I’m curious to see if the Investor Day will paint a broader picture for Uber’s growth moving forward.

Regardless, the quest for consistently positive Adj. EBITDA continues. As a reminder, Wall Street’s 12-month PT on Uber’s stock is $66 / share.

Major Economic Updates:

The market anticipates another brutal CPI reading this Thursday — with economists forecasting inflation around +7.2% for January. This would be the highest inflation rate in 40 years.

Monday (2/7): Consumer Credit

Tuesday (2/8): Household Debt, International Trade

Thursday (2/10): Consumer Price Index (Inflation)

“We expect continued volatility, which as we’ve all seen in individual stocks in the last week, can be both to the upside and the downside, all in the run-up to the momentous March 15 FOMC meeting.”

— Julian Emanuel, Senior M.D. at Evercore ISI

The talking point you should expect to hear a lot this week — if the Federal Reserve will be even more aggressive in raising rates after a potentially brutal inflation reading. Right now we’re slated to experience 5-7 rate hikes.

Event-Driven Winners:

What specific events are moving the markets most?

Our friends at LevelFields took the time to scrub through thousands of data points and determine how events impacted stock prices last week. It’s a killer platform for catching trading opportunities as they arise.

This info may help you with forming your swing trading theses this week (if that’s your thing), or simply seeing what actions cause stocks to jump!

Have a great start to your week! If you find these Week Ahead posts helpful, 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.