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Let's take a look now at some stocks making news in the week ahead. I'm Nathan Hager, joined by Bloomberg News Equities reporter Alexandra Semenova and alex We're gonna hear from some big ones this week in terms of the earnings. The biggest name in retail is reporting on Thursday. What are we expecting from Walmart?
Hey, Nathan, So it is indeed going to be another busy earnings week. Walmart is such a bell weather of low and mid income consumers, so that's going to be an important company to watch. It is scheduled to report earnings results before the bell on February nineteenth, And something to note ahead of its earnings read out is Walmart just saw its market cap eclipse the one trillion dollar mark on February third for the first time ever. This
is something that you don't see from retailers. It's something you typically see from tech giants. So Walmart is now in a category typically occupied by big tech heavyweights such as Nvidia and Alphabet Inc. And Walmart is a long time favorite, of course, of bargain hunting consumers, which is why it has been doing so well. It has flexed its massive scale and supplier network to keep prices low
and grab market share across various income levels. And not only has Walmart maintained its appeal to households looking for value, it's also been recently drawing some new wealthier shoppers as well with its online business. So when we get to those results, some of the key metrics to watch will be same source store sales performance. That is going to be an important metric to monitor growth for long term revenue and profit expansion for the company, contribution from higher
margin businesses to and inventory management. And I want to point out that the stock is up something like nineteen percent year to date, so the bar is pretty high going into these results.
Yeah, certainly with a trillion dollar valuation now and with the fact that Walmart recently relisted to the Nasdaq, it really does seem like they're leaning into this tech side of the story. But we're also going to hear from another name that we think of more traditionally on the tech side, door Dash reports on Tuesday, Right.
Yeah, it does, Nathan. So I'd say for this company, the main thing investors will be watching is signs that it can monetize on heavy capex spending. So during the last earnings report from DoorDash, it took a record plunge after the company said it's going to spend more on investments next year to build new products and bolster internal tools,
which really weighed on its earnings forecast. These increased costs contributed to a muted fourth quarter forecast for adjusted EBITA specifically, with the company expecting that metric to be around seven hundred and ten million dollars to eight hundred and ten
million dollars, so watch that number. Also watch order growth, which is currently exceeding that of some of its online delivery peers, and it's also supposed to get a potential boost from Delivery, which it acquired recently, so that's going
to be something to monitor during those results. And then it is also expanding into new categories beyond just restaurant delivery, so groceries and convenience, which are expected to aid with consumer retention and head of the report, some of the big Wall Street firms did lower their price targets on the company. Bank of America was one of them, lowering their price target to two hundred and sixty dollars a share from three hundred and five dollars a share, but
it did still maintain a by rating. Goldman Sachs added door Dash actually to its US conviction list, so that's pretty positive. And one more thing to note is, of course, DoorDash and Uber just lost a bid to block a New York City law requiring a tipping option to be presented to customers at checkout from going into effect, so it's likely we're going to see perhaps management commentary on
that front. DoorDash has been having a pretty hard start to the years, down something like twenty seven percent so far.
Well, another big name we're going to hear from is a bell Weather on the agriculture economy. Deer has really been on a tear since the start of the year.
Alex.
Yeah, it has been a really interesting company to watch, given the fact that it's kind of been at the center of Wall Street's big rotation trade into sectors outside of technology. So it's actually trading at a record high now amid a rally that has come as interest rate cuts and strong US growth push investors into sectors of the market closely linked to the health of the US economy.
So deer Cell's construction equipment in addition to its iconic farmer machinery, and that's been an industry that up until recently was really struggling. Investors are betting it could get a boost from the Fed's monetary easing and some data that showed that the US economy is expanding at a healthy pace. So when the company reports earnings, Wall Street will be looking for any update on its industry outlook.
Investors are still waiting for a rebound in the US farm economy, specifically, so something that would spur farmers to
buy new tractors and other equipment. Deer shares had hit a record last May on the same hopes, but that turned out to be a headfake, so the key question is will this also be The farm economy is projected to extend its downturn actually through twenty twenty six so far, expecting net farm income to fall by one percent according to the USDA, and deer also said in November that it expected industry sales of large equipment to fall fifteen percent to twenty percent in the US and Canada, so
we're going to see what it says on those fronts. It is up nearly thirty two percent year to date. Yet again, a company that has a really high bar going to report.
The stockmover's report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.