Walmart and Target is in focus for me this week. Two corporations in the same business but also very different. Walmart is a giant while Target is smaller with more growth potential. Walmart will report earnings on Tuesday before the market opens. Target on Wednesday.
Walmart`s EPS forecast for the quarter is $1,21. The reported EPS for the same quarter last year was $1,18. The consensus EPS forecast for Target`s quarter is $2,11 vs $0,59 for the same quarter last year.
The numbers for Target looks better than the giant Walmart, but the number as a whole will also give us more information about the consumer spending during the Covid-19 pandemic recovery.
Walmart has been one of the big winners thanks to the pandemic, and reported record fourth-quarter and fullyear sales in February. However, the momentum slowed down in the first three months of the year. So, two more rounds of direct checks to most Americans didn`t help this time.
Analysts expect to see Walmart`s revenue dip 2% but earnings to rise by 4%. The company has been shelling out additional capital to raise wages for workers and build out its relationships with shoppers.
Walmart will spend nearly $14 billion in the current fiscal year to build out supply chain capacity and automation to keep pace with demand. Investors will look at Walmart`s newer initiatives in this week`s earnings report.
Target is smaller but grow faster. The company is expected a growth of 10,1% from the prior-year reported figure. It`s also estimated a big jump for Target`s earnings on Wednesday. EPS has risen to $2,11 which is a sharp improvement from 59 cents from a year ago.
Target is also one of the biggest winners during the pandemic, and its one-stop shopping destinations has been a big success. Same-day delivery of in-store purchases and fast track technology improvements has also been a great success for Target.
I have been a big Manchester United fan all my life, but some fans are angry now. Many of them has been angry toward the owners for about 16 years, and that reached a new level when the Glazers signed up to the doomed Super League project.
Some fans stormed Old Trafford last week, and some of them had a T-shirt with this logo; United Against Greed. The riots got angry and started throwing bottles before police got kitted up in full riot kit.
A smaller number of fans was inside the stadium. One took a corner flag, and some swung from the crossbar of one of the goals. Many were clutching beer bottles. Everybody understand that theese people does not represent the majority of the supporters.
Andy Burnham, mayor of Greater Manchester, condemned the «minority» of Machester United supporters for their roles in the protests.
Burnham took to Twitter on Sunday to say he «fully understands» the concerns that led United supporters to protest, adding that it is «essential that those running the club and the game listen to them».
He wrote in a statement: «It is important to make clear that the majority of supporters made their protest peacefully today. However, there is no excuse for the actions of a minority who injured police officers and endagered the safety of others.
«This could be an important moment to change football for the better. We should all condemn violence of any kind and keep the focus on the behaviour of those at the top of the game.»
The tension has been high since the Glazers took over the club in 2005. Nor do the fanbase like the level of debt they have after being debt-free for so many years.
Some fans claim that they are the real owners of the club and that the Glazers have stolen the club from them. Some demanded the installation of Germany`s 50+1 ownership model at the protest, which ensured voting right for the fans.
Some fans act like Manchester United is bankruptcy tomorrow, but they are far away from that.
Manchester United are one of the richest football clubs in the world (nr 4), according to Deloitte`s latest Football Money League.
The report showed that the top 20 clubs, all based in Europe, manage to accrue a combined €8,2 billion during the 2019 – 2020 season. That`s down 12 percent caused by Covid-19 pandemic, which impacted broadcast and matchday revenue.
Barcelona are the world`s richest football club in 2021, according to the Deliotte rankings, retaining a light margin ahead of Spanish rivals Real Madrid.
Bayern are third on the list in front of Manchest United, named the richest English side.
The fanbase in Manchester United doesn`t like the debt, which is £515 million, after spending £730 million on players. But what is that compared to the richest club in the world?
Barcelona`s status as the richest club in the world, however, has been overshadowed by their €1,2 billion debt alongside the reveletion that Lionel Messi`s salery is at €555 million.
Keep in mind that Manchester United`s value is $4,2 billion, while Barcelona`s value is $4,76 billion. Manchester United`s revenue in 2020 came in at $643 million, so they will no go bankruptcy tomorrow with the debt they have today.
What made this football industry so rich? Is it greed? If it is, what will the football look like without it? Sometimes, greed can be a positive thing.
Greed can be good not just for your own life, but for others as well. By elevating your life, you can radically elevate your family`s life, your community, and yes, even the world. Greed can also be a form for motivation.
Greed inspires people to push for better social and economic outcomes than they have. Altruism is a better force for creating positive change, but it takes time to develop it.
Eric Fromm is one of my favorite authors. He once said; «Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction.»
Greed is a human instinct, and fotball fans can be extremely greedy too. Greedy means you want more of something, and fans wants a new game. They pay for entertainment, and nothing is better than two clubs in a good game. That`s real entertainment.
If you love football, you can watch it in your backyard, but the skills you see isn`t near the skills you see on Old Trafford. The skills you see on Old Trafford is what the owners pay for to give you a great product, and the product you see is what you are paying for.
Fotball is a product and greedy people will always try to develop it to the better. They are always hungry. It is a part of the evolution.
Snap Inc is expected to report earnings on 22 April, 2021 after the market closes. The stock has skyrocketed since the pandemic started last year. The stock price is around $58 on Wednesday, but a strong set of numbers could push the price even higher.
The consensus EPS Estsimate is -$0,05 (+37,5% YoY), and the consensus revenue estimatae is $740,89 million (+60,2% YoY). Snap is without any doubt a pandemic winner, but the company can remain at this level when countries are opening up again.
Snap`s average revenue per user (ARPU) which increased by 33% to $3,44 is far away from the king of social media; Facebook, which generated a staggering $32 per user in the period. As you can see, there is room for growth in here and innovation can help Snap in the future.
Earlier this month, Snap acquired the fashion recommendation app Screenshop. A company that analyzes photos to provide clothing suggestions. In March, they acquired FitAnalytics, a machine learning platform that helps customers pick the right clothing size when they shop online.
Both companies will be integrated into the Snapchat app very soon.
Snap is also working with PayPal to expand into new industries like cryptocurrencies and e-commerce. These are growth drivers that can help them both to boost their growth rate make investors and money makers happy.
Snapchat is popular among Gen Z (13-24) and their DAU is growing. DAUs were 265 million in the last quarter, and they are growing in Europe, North America and the rest of the world. Snap offers one of the most-used camera applications globally. 5 million snaps is created daily.
First-quarter top-line growth might have been impacted by lower ad spending. Also, a continued decline in price per ad impression and increasing competition might have weighed on advertising revenues, the only source of revenues for Snap.
Usage of augmented reality (AR), one of the fastest-growing digital technologies during the pandemic, is anticipaated to expand four-fold by 2023.
The bull market is 11 years old on Monday, and it is the longest stretch of non stop gains ever. The sell off over the past 12 trading days means that the US stocks are on the edge of a bear market. Therefore; Tuesday will be a test.
If the market goes below 20%, the bull market will officially be over, and we are entering a bear market. After the Great Recession, the bull market started in March 2009. The S&P 500 has gone straight up since then.
The S&P 500 is up 339% and it has been a slow recovery. It`s similar to the recovery from the Great Depression in June 1932 were the S&P 500 skyrocketed 325%. At that time, it was the deepest recession in modern American history.
President Franklin Roosevelt supported the bull market with massive government spending. Later on, Roosevelt pulled back from the program and the Fed tightened its reserve ratios for banks. The economy didn`t recover as much as it should, and tighter monetary and fiscal policy led to a double-dip recession.
This is why the Fed is important now. So are the Trump administration. The Fed cut the rates 50 points only days ago and they will probably come up with more news about the market even this week.
The Fed offers Repo Market $50 Billion more to ease rate pressure. New York Fed Repo Totals $112,93 Billion and Fed`s move to tap liquidity operations will buy time on more rate cuts.
What they do now is great leadership on the world stage. They can`t stop the virus but they can make liquidity.
To contact the author of this story: Ket Garden at email@example.com
Last trading week was crazy, but the start of this week was even more crazy. Everybody said don`t buy the dip, and now you can clearly see that everybody is doing the opposite. They are buying the dip. But take a look at one of the top stocks I am looking at in times like this.
Target Inc jumped nearly 6% on Monday, while WalMart jumped nearly 8%. Target Inc warned investors that its holiday season was weaker than the company was expecting. Wall Street expects Target Inc to earn $1,66 per share on revenue of $23,47 billion. Last year earnings came to $1,53 per share on revenue of $22, 98 billion.
The consumer is strong and remain the driving force of the U.S economy. Just as important, big-box retail is not dead, as evidence by the strong earnings results and forecasts just delivered from Walmart.
Can Target Inc keep up the pace? Target Inc has been one of the better performers in the retail sector, with its shares up 42% over the past year, thanks to the company`s e-commerce initiatives. But with concers about the coronavirus, Target Inc will need strong top-and bottom-line results, solid growth and upside guidance to keep Wall Street excited about its direction.
Watch out for Target Inc before the open on Tuesday March 3.