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Earnings Outlook – Sell TWTR Stock Before Twitter Earnings

Last week in my earnings outlook, I predicted that Netflix (NFLX) earnings would result in a surge for NFLX stock, that Facebook (FB) would report decent numbers and that Apple (AAPL) would soften up after its earnings report.

I got the first two right, though Apple proved me very wrong with a strong earnings report and great iPhone sales numbers.

This week, the stocks that I’m watching are:

Ebay earnings: EBAY stock has been very choppy across the last year, with the e-commerce arm of the business failing to set off any fireworks. As such, investors like Carl Icahn have been agitating for the company to spin off its PayPal mobile payments arm. As such, the pressure is on for PayPal to put up great numbers this quarter — and while I expect growth, I don’t expect the pop Wall Street is looking for. EBAY stock will soften up after earnings as a result.

Twitter earnings: TWTR stock has just stepped off a cliff in 2014, with returns of -35% since Jan. 1. Unfortunately, the company is having a hard time moving its user metrics in the right direction and generating the ad dollars investors are looking for … and I expect further validation of this trend in this week’s Twitter earnings.

LinkedIn earnings: On the other hand, LinkedIn continues to show that the company has both loyal paying users and a great social media niche with its business-focused networking focus. LinkedIn has cooled off in 2014 after weak guidance and poor earnings in February, but I think the negativity has now been priced in. To me, the issue was that LNKD ran up too much as the stock roughly doubled in 2013, and now that expectations are more realistic, it will do well in 2014.

That’s my take, anyway. Looking ahead, this week’s earnings outlook includes:

  • Earnings today after the close: American International Group (AIG), Buffalo Wild Wings (BWLD)
  • Earnings Tuesday before the bell: 3D Systems (DDD), Coach (COH), Merck (MRK)
  • Earnings Tuesday after the close: eBay (EBAY), Twitter (TWTR), Panera (PNRA)
  • Earnings Wednesday before the bell: Uh … utility Southern Company (SO)? I got nothing.
  • Earnings Wednesday after the close: Yelp (YELP) and I guess maybe some people care about Metlife (MET). Or Boston Beer (SAM).
  • Earnings Thursday before the bell: Mylan (MYL), Kellogg (K), Clorox (CLX), MasterCard (MA), Exxon Mobil (XOM), ConocoPhillips (COP)
  • Earnings Thursday after the close: Kraft (KRFT), LinkedIn (LNKD), Expedia (EXPE), Akamai (AKAM)
  • Earnings Friday: Chevron (CVX) before the bell, nothing else of note. 

Jeff Reeves is the editor of and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at or follow him on Twitter via @JeffReevesIP

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