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While many businesses struggled during the coronavirus pandemic and the subsequent lockdowns, companies like Netflix, Tesla, and Amazon have thrived. This week, all three are set to release their earnings reports, and investors are eager to see if they will meet expectations.
Netflix is one of the most anticipated reports. With people stuck at home and movie theaters closed, more have turned to Netflix for entertainment. The company is expected to report an increase of 9.5 million subscribers, surpassing the initial estimates by 2.5 million. This growth is expected to bring Q1 2020 revenue to around $5.73 billion.
Looking at the 4-hour time frame, Netflix’s share price has given up some of its recent gains but still has room to drop while maintaining its overall uptrend. There’s trendline support around $406.75, which aligns with the 50% Fibonacci level when drawn from the low of April 9 to the high of $421.05. However, if Netflix delivers strong results, the stock might not pull back and could instead rally to $449.26.
Tesla had a strong bullish run last week, partly due to general market optimism, but also because it exceeded expectations in vehicle deliveries for Q1 2020. Tesla’s revenue is expected to increase by 29.8% from the previous year, reaching $5.89 billion.
Tesla’s share price remains in an uptrend, supported by a rising trend line visible when connecting the lows of March 18 and April 2. If Tesla’s earnings impress investors, the share price could climb higher, potentially reaching its February highs of $945.25. However, if the earnings disappoint, the stock could fall to $609.45, where it may find trendline support.
Amazon, the e-commerce giant, is expected to post a lofty $87.4 billion in revenue. On the daily chart of Amazon CFDs, after the stock surged to an all-time high of $2,458.57, it pulled back slightly. Currently, the share price is around $2,330.80, which aligns with the 23.6% Fibonacci retracement level when drawing from the low of April 3 to the high of April 16. If Amazon’s earnings exceed expectations, driven by increased online shopping, the stock could rally to new highs. Conversely, disappointing results could push the price down to $2,170.00, where the rising trend line from the lows of March 16 and April 3 coincides with the 50% Fibonacci level.