Tech Stocks Roundup: Microsoft Earnings On Deck

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Microsoft  (MSFT) – Get Report is among the S&P 500 companies set to report earnings results over the next five days. The list also includes Tesla  (TSLA) – Get Report, Apple  (AAPL) – Get Report, Alphabet  (GOOGL) – Get Report, and Facebook  (FB) – Get Report.

The tech giant is expected to report adjusted net income of $13.4 billion, or $1.78 a share, on sales of $41 billion after the market closes on Tuesday, based on a FactSet survey of 29 analysts.

The stock has risen 10.7% since the company last reported earnings on Jan. 26. In the upcoming quarter, analysts are forecasting adjusted net income of $13.5 billion, or $1.78 a share, on sales of $43 billion. For the year, analysts project revenue of $164 billion.

Spotify Technology  (SPOT) – Get Report advanced Monday after the audio-streaming platform said it was increasing some of its prices in the U.S. and the U.K. starting April 30. Shares of the Luxembourg company at the last check were up 4.2% to $296.11.

The subscription for Spotify’s Family Plan subscription in the U.S. increased by $1 to $15.99 a month, while its U.K. plan prices have been raised across its Student, Duo, and Family Plan subscriptions.

Spotify is scheduled to report earnings on Wednesday.

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Here is a list of the technology stocks to watch and their performance by percentage change over the past five days through the close of trading on Monday, Apr. 26:

Microsoft | +1.20% 5-Day

Microsoft  (MSFT) – Get Report has made its Xbox Cloud Gaming service available to Windows 10 PCs and Apple phones and tablets, the Redmond, Wash., tech giant said in a blog post on Monday.

Microsoft earnings are scheduled for Tuesday, Apr. 27.

The service, for now, is in a beta version, with certain Xbox Game Pass Ultimate members being eligible for an invite-only pass starting on Tuesday, Microsoft’s head of Xbox’s cloud gaming service, Catherine Gluckstein, said in the blog post.

The cloud aspect lets users stream games without having to download them, provided their internet connections are fast enough, CNBC reports. The service will be available in 22 countries. Microsoft says it has plans to continue its rollout and invite new users.

The Street Quant Ratings rates Microsoft as a Buy with a rating score of A.

Snap | -0.40% 5-Day

Snap  (SNAP) – Get Report shares gained this past week after the social media company reported revenue and user growth that beat expectations, prompting several analysts to lift their one-year price targets.

Snap reported a first-quarter loss of $287 million, or 19 cents a share, compared with a loss of $306 million, or 21 cents, in the year-earlier quarter. Revenue increased 66% to $770 million.

The company was a volume leader at the close of trading this past week with 115,802,700 Shares Traded.

TheStreet Quant Ratings rates Snap as a Sell with a rating score of D.

Citrix Systems | +1.16% 5-Day

Shares of Citrix  (CTXS) – Get Report advanced this past week after the IT solutions provider was upgraded to buy from hold at Jefferies, as the investment firm expects remote work is here to stay.

The company’s Workspace service helps businesses enable remote working for employees. Shares of the Citrix at the last check rose 4% to $143.69. The stock was the best performer among its peers, according to Bloomberg. 

Jefferies analyst Brent Thill also raised his price target on the stock to $180 from $150. The new target indicates a 30% potential upside from this past week’s closing price at $138.12. Thill said investors continue to underappreciate the company’s ability to hit, or potentially even beat, its calendar 2022 free-cash-flow target.

TheStreet Quant Ratings rates Citrix as a Buy with a rating score of B-.

Spotify | +16.99% 5-Day

Spotify Technology  (SPOT) – Get Report shares rose this past week after Jefferies began coverage of the audio streaming platform with a buy rating and $360 price target.

The company will probably turn into “the primary audio platform for creators,” Jefferies analyst Andrew Uerkwitz wrote in a report cited by Bloomberg. Spotify has “substantial” long-term opportunity and trades at a discount to other content platform companies, he said.

Spotify recently traded at $270, up 1.8%. It has eased 2% in the past six months, as competition heats up in the audio content space.

TheStreet Quant Ratings rates Spotify as a Sell with a rating score of D.

Peloton Interactive | -4.61% 5-Day

Peloton Interactive  (PTON) – Get Report stock was under pressure following the U.S. Consumer Product Safety Commission (CPSC), which said that “multiple incidents of small children and a pet being injured beneath Peloton’s Tread+ machines” preceded its formal warning, adding that its “continuing to investigate all known incidents of injury or death related to the Peloton Tread+.”

Cramer said Peloton is not a buy and investors [who own it] need to sell the stock. “It’s not going to necessarily knock the thing off the market but people who watch that video will say they like to have their kids workout with them etc but you will have to take to an isolation chamber if you want to use a Peleton,” said. This incident is bad for sales, Cramer added.

TheStreet Quant Ratings rates Peloton as a Sell with a rating score of D+.

IBM | +6.54% 5-Day

International Business Machines’s  (IBM) – Get Report Institute for Business Value (IBV) surveyed over 14,000 consumers in nine countries about how the COVID-19 pandemic affected their views on environmental sustainability. Nine in 10 consumers surveyed reported that it did affect their views, and COVID-19 was the top factor cited in influencing their views.

Intel  (INTC) – Get Report plans to evolve into both a designer and manufacturer and next-generation computer and smartphone chips while also developing a new business — thanks in part to a development partnership with IBM — that allows other companies to use its Arizona hub to make their own semiconductors.

TheStreet Quant Ratings rates International Business Machines as a Buy with a rating score of B-.

Zoom Video Communications | +3.65% 5-Day

Zoom Video Communications  (ZM) – Get Report this past week unveiled a $100 million venture fund to collaborate and build a larger ecosystem of apps and other hardware products, as the videoconferencing platform braces for a post-pandemic world.

Portfolio companies will receive initial investments between $250,000 and $2.5 million to build solutions that will become core to how Zoom customers meet, communicate and collaborate, the company said.

TheStreet Quant Ratings rates Zoom Video Communications as a Sell with a rating score of D+.

Shopify | +1.15% 5-Day

Shopify  (SHOP) – Get Report has noted that the pandemic has accelerated the secular shift toward e-commerce and away from legacy software platforms. Shopify’s total addressable market for small businesses is estimated at $153 billion.

“This is a chance to buy this company well off its high. You want to own it,” Cramer said of Shopify during a “Mad Money Lightning Round” this past week.

TheStreet Quant Ratings rates Shopify as a Hold with a rating score of C.

PayPal | +1.08% 5-Day

PayPal  (PYPL) – Get Report shares rose this past week after the company unveiled plans last month that will allow its customers the ability to buy goods and services with cryptocurrencies at more than 29 million merchants around the world, which may be the biggest single effort to normalize digital purchases.

The service’s 70 million customers will be able to choose from four types of cryptocurrency: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, the New York mobile payment company said in a statement.

PayPal, Venmo’s parent, has been adding cryptocurrency features to its mobile payment service. The company said it saw rates of users signing into its interface double when crypto features were introduced, Bloomberg News reports.

TheStreet Quant Ratings rates PayPal as a Buy with a rating score of B+.

Square | +4.18% 5-Day

Square  (SQ) – Get Report is among the list of largest publicly traded companies that hold Bitcoin. Cryptocurrency investment is also seen among Tesla  (TSLA) – Get Report, Twitter  (TWTR) – Get Report, MicroStrategy  (MSTR) – Get Report, and Coinbase  (COIN) – Get Report. Combined, the companies hold 152,093 Bitcoin valued at over $9 billion.

“I have always said that I think Square is terrific because it’s willing to give you a piece of bitcoin. But my limited purview is the companies that are giving you the opportunity, and I favor them over those that aren’t,” Cramer said of the company this past week. 

TheStreet Quant Ratings rates Square as a Hold with a rating score of C.

Okta | +7.06% 5-Day

Shares of Okta  (OKTA) – Get Report are on the rise after the maker of identity-management software reiterated its guidance for the year and introduced two new products that could expand its addressable market. The surge was also attributed to Okta’s projected sales growth of 30% over the next three years, fueled by the shift to remote work.

The company expects revenue at the end of fiscal 2024 will be close to an annualized $2 billion, or about $500 million for the fourth quarter, Chief Executive Todd McKinnon said in an interview with Bloomberg News.

TheStreet Quant Ratings rates Okta as a Sell with a rating score of D+.

Palantir Technologies | +2.21% 5-Day

In the Mad Money “Lightening Round” this past week, Jim Cramer, the founder of TheStreet, was bullish towards Palantir Technologies  (PLTR) – Get Report.

Palantir, a security and data analytics provider, said earlier this month that it was selected by the National Nuclear Security Administration to provide its security platform and related services in an $89.9 million, five-year deal.

Under terms of the contract, the NNSA’s Office of Safety, Infrastructure, and Operations said it will use Palantir for “effective knowledge management and data-driven decision-making” as part of a bigger project on safety, analytics, forecasting, and evaluation reporting, also known as SAFER.

TheStreet Quant Ratings has no rating for Palantir Technologies.

Salesforce and Microsoft are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now

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