EarningsBeats Digest

Published: Mon, 11/02/20

EarningsBeats.com Digest for November 2, 2020

Trading Places Live!

Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.

EarningsBeats.com November Educational Lineup

(more details to follow!)

Monday, November 9: "Sneak Preview: Top 10 Stock Picks"

Friday, November 13: "Scanning and Stock Analysis"

Tuesday, November 17: "Max Pain Webinar"

Wednesday, November 19: "Top 10 Stock Picks"

Is Another Blowout Internet Earnings Report On The Horizon This Week?

Recently, both Pinterest (PINS) and Snap (SNAP) reported results that were off-the charts, blowing away both revenue and EPS estimates. Wall Street reacted quite favorably to both and shareholders that held into earnings were handsomely rewarded, especially in the case of PINS. PINS gained close to 40% at one point during the trading day after earnings. It's pulled back since, but still remains well above its price level just before earnings were released. Both PINS and SNAP were already leaders in the internet space before they reported quarterly results, so Wall Street was anticipating excellent numbers. On Wednesday, November 4th, Upwork (UPWK) will report its latest results and Wall Street's been bidding the shares higher for week:

The relative strength in unmistakeable as UPWK's was at a 52 week high in recent weeks before seeing a bit of profit taking. The expectation, however, is that numbers will be strong. Will they be PINS and SNAP strong? That remains to be seen, but UPWK is certainly set up in similar fashion. Holding ANY stock into earnings can be quite risky, however. Twitter (TWTR) also looked strong heading into earnings and subsequently fell more than 20% the day after earnings. So there are no guarantees and you should be willing to accept the risks of holding a stock like UPWK into earnings.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.