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3 Stocks To Watch In The Coming Week: Facebook, Micron Technology, Nike

By xhaszzx.com (Haris Anwar/xhaszzx.com)Stock MarketsJun 28, 2020 03:14AM ET
xhaszzx.com/analysis/3-stocks-to-watch-in-the-coming-week-facebook-micron-technology-nike-200529055
3 Stocks To Watch In The Coming Week: Facebook, Micron Technology, Nike
By xhaszzx.com (Haris Anwar/xhaszzx.com)   |  Jun 28, 2020 03:14AM ET
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Investors should brace for another volatile trading week in the U.S. where COVID-19 continues to spread at a time when investors were hoping for a quick economic recovery.

Stocks fell sharply on Friday after Texas rolled back some of its reopening measures as coronavirus cases continued to spike there. Florida, where new COVID-19 cases surged to a record high on Friday, banned drinking at bars again in an effort to slow the spread.

The Dow Jones Industrial Average closed 730.05 points lower, or 2.8%, while the S&P 500 slid 2.4%. It was the second weekly drop for the major average within three weeks. The Dow and S&P 500 fell 3.3% and 2.9%, respectively, for the week and the NASDAQ lost 1.9% over the same time period.

Beyond the still-spreading contagion and its impact on markets, here are three individual stocks we'll be focusing on during the upcoming week:

1. Facebook

Social media giant Facebook (NASDAQ:FB) is back in the headlines, but, unfortunately, for all the wrong reasons.

Facebook Weekly Chart
Facebook Weekly Chart

Shares of the Menlo Park, California-based company plunged more than 8% on Friday after an array of large advertisers announced they were halting their social media ad spending on Facebook after the social media colossus failed to remove hate speech from its platform.

Global brands taking part in this boycott include Unilever (NYSE:UL), Coca-Cola Company (NYSE:KO), Levi Strauss (NYSE:LEVI), Honda (NYSE:HMC) and Verizon (NYSE:VZ). The effort was launched in mid-June by a group of civil rights organizations that asked advertisers to 'pause' their ad spending during the month of July. The organizations include the Anti-Defamation League, the NAACP, Sleeping Giants, Color of Change, Free Press and Common Sense.

Facebook critics have said that the world’s largest social media platform has failed to curb hate speech and disinformation on its properties. On Friday, Mark Zuckerberg tried to control the damage by announcing that the company would start labeling political speech that violates its rules and take other measures to prevent voter suppression and protect minorities from abuse.

If the campaign against Facebook accelerates, it could add selling pressure to Facebook stock which had gained 18% before the current crisis began. Shares closed at $216.08 to finish the trading week.

2. Micron Technology

Chipmaker Micron Technology (NASDAQ:MU) will report fiscal 2020, third quarter earnings on Monday, June 29, after the close. The storage chip manufacturer is estimated to have made $0.75 in profit per share on $5.26 billion in revenue.

Micron Technology Weekly Chart
Micron Technology Weekly Chart

Micron provided a strong sales forecast for the past quarter in its May earnings update. The company told investors recently that it has come through the worst of a slump in the memory-chip sector.

Before the coronavirus outbreak, Wall Street was predicting a recovery in demand as the market for computer and smartphone components returned to growth. In April, Goldman Sachs downgraded Micron’s stock to neutral from buy, saying, at that time, that the company's valuation fully reflected its growth prospects.

But upcoming results from Micron, the biggest U.S. maker of memory chips, may give investors some insight on how the semiconductor industry is performing, especially when most of the global economy is facing a recession. The stock closed at $48.49 on Friday, after falling more than 1% for the day.

3. Nike

Shares of sportswear heavyweight Nike (NYSE:NKE) may remain under pressure this coming week, after the company reported a surprise loss in its latest earnings release. The world’s largest athletic brand posted disappointing sales in the fiscal fourth quarter, hurt by its shuttered retail stores across the U.S. and much of the world amid the pandemic.

Revenue declined 38% to $6.31 billion in the period ended in May, well short of the $7.38 billion estimated by analysts. Its loss amounted to $0.51 a share, compared with a projection for earnings of $0.10.

Nike Weekly Chart
Nike Weekly Chart

After Nike shares rebounded strongly from the March low, the stock fell more than 7% on Friday, closing at $93.67. Despite the surprising loss, Nike’s e-commerce segment was booming; digital revenue surged 75% last quarter.

In a bid to ease fears about a prolonged slump, the company said about 90% of its global stores are currently open. The company also said sales for this fiscal year, which runs through next May, would rebound in the second half to be little changed or possibly posting a gain.

3 Stocks To Watch In The Coming Week: Facebook, Micron Technology, Nike
 
3 Stocks To Watch In The Coming Week: Facebook, Micron Technology, Nike

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Comments (14)
Brad Smith
Brad Smith Jun 30, 2020 9:30PM ET
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Haris, thank you for your insight into these 3 picks. The entire drama surrounding FB shows just how reliant FB is on advertising revenue.
Shea Andersen
Shea Andersen Jun 30, 2020 6:49PM ET
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Super long
Supachet Charles Thamrongvithavatpong
Supachet Charles Thamrongvithavatpong Jun 30, 2020 12:25PM ET
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They’ll all come back as Facebook is still the greatest platform and the only ones that can reach the huge amount of audience worldwide.
Evan Evans
Evan Evans Jun 29, 2020 2:12AM ET
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FB doesn't need to play politics and have an opinion on the speech of people. What people say is their own responsibility and opinion.
LéoJon Anis
LéoJon Anis Jun 28, 2020 8:27PM ET
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no more ,For Sell only
Joshua Holcomb
Joshua Holcomb Jun 28, 2020 8:22PM ET
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Hershey also pulled ad
Rebecca Nordby
Rebecca Nordby Jun 28, 2020 4:24PM ET
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stay at home $insg Insergo expected to fly up this week ✅ 5G
Tom Jones
Tom Jones Jun 28, 2020 4:24PM ET
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Guessing you own it? Playing via tower REITs is safer.
Indiana Jones
Indiana Jones Jun 28, 2020 2:34PM ET
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You can add SBUX to the list of companies pulling advertising from ALL social media, announced today. But it’s not just FB facing rev drops from ads being pulled. TWTR, GOOG, SNAP, are being boycotted, as well. While they were never intended to be media companies, they have (unwittingly or not) become so and will soon be regulated, then perhaps ad revs will return. Here’s a simple test for if they’re media cos: Would the Wall St Journal, Financial Times, or any respecable news outlet be including many of the stories...even in their editorial sections...that have been showing up on SM without HUGE caveats as to their content/source accuracy/credibility? Answer: No. This means TWTR will become less of a free media ride for politicians (one in particular). Thus, I’d guess that Biden will increase his lead in the polls = stock market gets smashed because he will significantly raise US corp taxes. Buying Oct SPY puts, as the virus will be back up north by then, too.
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Jeffrey Whittinghill
Jeffrey Whittinghill Jun 28, 2020 2:34PM ET
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Who cares. Starbux is trash
Jeffrey Whittinghill
Jeffrey Whittinghill Jun 28, 2020 2:34PM ET
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Obama was and is trash. The worst we ever had
Tom Jones
Tom Jones Jun 28, 2020 2:34PM ET
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Jeremy Thornton What does your comment have to do with my post lol?
Tom Jones
Tom Jones Jun 28, 2020 2:34PM ET
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Jeffrey Whittinghill Agree, cuz a lot of retail investors own it, but in this advertising context SBUX is relevent to pros cuz it’s another huge brand walking the walk.
Water Bender
Water Bender Jun 28, 2020 2:34PM ET
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pls stop this 2 party conversation...the USA just appears to have 2 parties when in reality the big boss is the fed and top 1% rich...they run the country and instruct the dems and repubs what to do. It is fun to pretend we actually have a choice.🤔
Taylor Dalton
Taylor Dalton Jun 28, 2020 2:30PM ET
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Also watch $FREE (Whole Earth Brands) which just completed a merger Thursday through $ACTT. They own Equal, Canderel, and do a majority of the entire world's Licorice flavorings for 150 years. They have decade long supply contracts with the biggest corporations in the world. Starbucks, Haribo, etc.
TJF Denver
TJF Denver Jun 28, 2020 1:28PM ET
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Ive told everyone Q2 and Q3 are gonna be ugly ... went 35% cash last monday
HAORAN DU
HAORAN DU Jun 28, 2020 1:04PM ET
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Still Don’t know what to do after reading almost all analysis articals, so frustrating, long way to go
MatIsa Isa
MatIsa Isa Jun 28, 2020 12:06PM ET
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Chart is the king!!! Buy or putt??!
Roderick tan
Roderick tan Jun 28, 2020 4:50AM ET
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The 3 stocks its looks negative news
Dinesh Choudhary
Dinesh Choudhary Jun 28, 2020 4:48AM ET
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hii sir ..can tesla stable on 1000$ this week ?
George Macintosh
George Macintosh Jun 28, 2020 4:48AM ET
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telsa releases sales figures this week. could go either way
Indiana Jones
Indiana Jones Jun 28, 2020 4:48AM ET
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George Macintosh In the current environment, I’d sell into any strength from TSLA’s earnings.
 
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