By Jeremy C. Owens
Earnings Watch: Meme stocks, fresh IPOs and SPACs, electric-vehicle companies and more will reveal earnings likely at odds with their outsize valuations in the week ahead
Wall Street has gotten weird during the COVID-19 pandemic, and all of that weirdness is about to be on full display.
Let's start with meme stocks. Can we interest you in the earnings of AMC Entertainment Holdings Inc. (AMC) on Monday afternoon? The theater chain's valuation has exploded from less than $1 billion to as much as $28 billion this year after being adopted by investors who gather on Reddit, and it now faces new mask mandates in some areas and renewed reticence to release new films into theaters.
See: After 'Black Widow' fails to lift AMC stock, retail traders try to become their own 'Avengers' ()
How about special-purpose acquisition companies, or SPACs, which have exploded into prominence in the past year? Got plenty of those, including three founded by "The Pied Piper of SPACs," Chamath Palihapitiya, that will divulge results after his first completed SPAC merger, Virgin Galactic Inc. (SPCE), reported last week and launched sales of space-tourism tickets (Clover Health Investments Corp. (CLOV) and real-estate platform Opendoor Technologies Inc. (OPEN) report on Wednesday afternoon, while financial-technology company SoFi Technologies Inc. (SOFI) reports earnings for the first time as a public company ( ) on Thursday afternoon.). Health-care software company
For more: SPACs aren't dead, but they don't look too healthy ()
Electric-vehicle companies that are trying to be the next Tesla Inc.(TSLA) are also on the agenda. One of the most controversial of the bunch, Lordstown Motors Inc. (RIDE), will reveal earnings Wednesday for the first time since dumping its chief executive and chief financial officer amid scrutiny. Nio Inc.(NIO), a Chinese electric car maker, will report on the same day.
Opinion: The Tesla bubble is a new version of the dot-com boom ()
Highly valued Chinese tech startups? Well, have you ever heard of KE Holdings Inc.(BEKE)? The Zillow Group Inc. (ZG) of China in 2020 became only the second Chinese company to raise more than $2 billion from China since Alibaba Group Holding Inc.(9988.HK), but has seen its valuation plummet amid a crackdown in China (Netflix Inc.(NFLX) of China -- will report on Wednesday afternoon along with KE.). The other company to score $2 billion between Alibaba and KE -- iQiyi Inc. (IQ), the
KE Holdings and iQiyi: A tale of two $2 billion Chinese IPOs headed in very different directions ()
Companies left for dead during by the pandemic by everybody except a hardy bunch of investors willing to take big risks? Well, there is Hertz Global Holdings Inc. (HTZZ), which went bankrupt ( ) when everyone stopped traveling and renting cars but discovered a ton of speculators willing to bet on it despite admitting the shares were likely worthless ( ). Those investors were rewarded after the company exited bankruptcy ( ), and Hertz now can show off returns from heavily increased prices as rental cars are scarce ( ).
Cryptocurrency has been the biggest investment news to you during the pandemic, you say? Well then, we give you Coinbase Global Inc. (COIN), the cryptocurrency holder and website that will hold its first earnings report as a public company on Tuesday, after a wild ride for crypto during the second quarter ( ).
And then there is a bunch of plain old highly valued post-IPO companies that joined a record wave of initial offerings during the pandemic. Two of 2020's largest offerings, Airbnb Inc. (ABNB) and DoorDash Inc. (DASH), report Thursday afternoon to show the current state of home-sharing and the gig economy, respectively. Palantir Technologies Inc. (PLTR), which performed a big direct listing late last year ( ) and has won its own fans on Reddit, reports Thursday morning. Unity Software Inc. (U), which provides software and monetization assistance to the booming videogame sector, reports Thursday afternoon.
Don't miss: Behind the scenes of Unity's unique IPO in the middle of a pandemic ()
Just on Wednesday, there is a spectacular collection of special reports from freshly public companies in addition to Lordstown, KE Holdings and the Chamath SPACs. Included in that list are online-dating company Bumble Inc. (), hot fintech company Marqeta Inc ( ), celebrity-backed alternative-food company Laird Superfood Inc. (LSF) , and erectile-disfunction specialist and regular podcast advertiser Hims & Hers Health Inc. (HIMS)
So sit back and get ready for a parade of pandemic payouts to strut their stuff on the earnings stage this week. Even if the results don't match up to the valuations, it should be fun to watch.
The calls to put on your calendar
The numbers to watch
This week in earnings
After more than 300 of the S&P 500 components reported in the past two weeks, the smaller companies not yet included in large indexes are wresting control of the earnings stage this week. Only 12 S&P 500 components are expected to report in the coming week, according to FactSet, with only one Dow Jones Industrial Average component on the calendar, Disney.
S&P 500 reports
Monday: Air Products and Chemicals Inc. (APD), Dish Network Corp. (DISH), Tyson Foods Inc. (TSN), Viatris Inc. (VTRS)
Tuesday: CF Industries Holdings Inc. (CF), Steris PLC (STE), Sysco Corp. (SYY), TransDigm Group Inc. (TDG)
Wednesday: eBay, Perrigo Co. PLC (PRGO)
Thursday: Disney, Broadridge Financial Solutions Inc. (BR)
-Jeremy C. Owens
(END) Dow Jones Newswires
August 09, 2021 08:17 ET (12:17 GMT)
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